The secret to staying on budget as a property developer.
Budget is a scary word that can be some property developers’ worst nightmare. We often find that when we ask our clients to provide their budgets, they don’t have one at all, which can make the entire design process a lot more complicated.
Although budgets aren’t our favourite thing either, they are a crucial element that gives a project clarity, sets expectations for the development, and can also help guide many decisions around what the property will look and feel like once you’ve finished.
It’s also important for property investors, who are all working with a particular ROI target in mind. For these people, going over budget can affect your ability to get a good return on investment.
Because we know budget is something that many of our clients struggle with, we’ve compiled a list of some of our very top tips on how to meet, and get the most out of, your project’s budget.
Lounge & Dining . Marlayton
Mardesign tips on sticking to your budget
We’ve helped hundreds of clients create exceptional properties, without having to worry about going over budget.
Here’s how we are able to achieve this:
Start by setting an overall budget for your project
The first thing that we work on with our clients is creating an overall budget for the project as a whole. This is the amount of money you expect the entire project to come in at, including everything from furniture and artwork, to accessories and styling.
This budget will set the tone for the development and will help your builders and contractors come up with accurate costs for you.
2. Break down your budget into smaller sections
Although the overall budget is important, it’s just as important to start sectioning off your project and coming up with accurate costs for every task.
You can break this down in any way that seems right for your project but, normally, you’ll want to think of things in terms of trades and material finishes (tiles, LVT, paint, wallpaper, etc.)
This is also your time to start prioritising your tasks and allocating budgets accordingly. When you decide which are the key areas of your property, it will be easier for you to make sure that the most important areas have the most budget behind them.
Bedroom 02 . Marlayton
3. Do as much research as you can
It can be overwhelming to look into the sea of possibility when it comes to things like finishes, materials, art, furniture and accessories, but doing as much research as you can early on will help you tremendously when it comes to drawing up your budget.
Try to research everything that you plan to use in your property development project, this will not only help you come up with accurate costs for everything but will also help you stick to your budget.
When you have a budget in mind, you can look for particular items that fall within your budget and avoid any disappointment down the line.
4. Create a schedule based off your budget plans
this is a must have in ANY project! There will always be something unexpected and this is exactly where contingency does wonders, not only on the base-built but also when styling and accesorising. We recommend depending on the scale of the project a 15%-20% contingency so that all grounds are covered.
Kitchen Styling . Marlayton
5. Plan for every possibility
As much as we would all love every project to run smoothly, this is unfortunately rarely the case. In any project, you are likely to encounter something unexpected, which will be the time when you’re thankful that you had some sort of contingency plan in place.
Whether you add a buffer to your budget to deal with additional expenses, or have alternative suppliers in mind if items aren’t able to shipped on time, the more planning you do the smoother things will run.
6. Remember, you can’t always have everything
The most important tip we have when it comes to sticking to your budget is learning to accept that sometimes you will have to say ‘no’ or compromise on some of the items in your project.
Unless you have an unlimited budget, you’re not going to be able to get absolutely everything – and that’s OK! No project is going to be completely perfect and, as a property developer, it’s important to learn when you need to compromise or change direction.
Everything is a learning experience, especially when it comes to things as important as your budget!
Bathroom Styling . Marlayton
Learn to love the budgeting process
If you’re able to follow all of the tips that we’ve listed above, you should be able to stick to your budget without any problems.
But, if you still think you need a little extra help, we’re here to lend a hand!
At Mardesign, we have plenty of experience working on property development projects and have worked with a range of clients to help them stick to their budget.
Get in touch TODAY and we’ll make sure that your project is on track and gets you the desired ROI upon completion.
Check out what investors say.
‘I have had the pleasure of working with Raquel on the design of a Co-Loving renovation project and I can honestly say she added so much value in an area that I was not very confident in and it was amazing to see her ideas come to fruition and look so good in real life. I would highly recommend working with Raquel.’
— David-Cliffton-Burraway. ProCo-Living
Check us out on Instagram and say Ola!
