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Monthly Wrap: Hidden costs of renovating a foreign property – and how to avoid them

currency-newsMonthly Wrap: Hidden costs of renovating a foreign property – and how to avoid them
Renovating a foreign property is an exciting prospect.

But whether you plan to make it your permanent residence or use it as as a holiday home, you’ll want to transform your property into your dream home without breaking the bank.

To help you plan a realistic budget we’ve put together a few of the costs that are commonly overlooked by homeowners when they plan renovations. 

Where are you going to stay?

Depending on how long your renovation project is going to take, you may need to factor accommodation and food costs into your renovation budget.

Staying in a hotel is generally expensive and isn’t typically compatible with even shorter-term renovation projects, so a short-term rental might be in order.

If your rental comes furnished you’ll also need to pay for the storage costs of your furniture and belongings.

And if you’re planning to live in your property during the renovation you’ll need to consider how much you’re likely to spend on eating out and takeaways while you’re kitchen gets spruced up.

Transfer fees soon add up

As you’ll probably need to move money abroad to fund the renovation of your foreign property, another sneaky hidden cost you may stumble across is transfer fees.

Transfer fees soon add up, but by using a leading currency specialist like Currencies Direct you’ll be able to avoid these fees, leaving you with more money to put towards your renovations.

Avoiding transfer fees is not the only benefit you’ll be able to take advantage of if you use a currency specialist.

You’ll also receive excellent exchange rates, get personal support and have access to a range of currency transfer options to suit your specific needs.

Disposal of debris

After you’ve ripped everything you need to out of your property ahead of starting your renovations you’ll be left with a lot of rubbish to dispose of.

Depending on where your property is located getting rid of this rubbish can be easier said than done, which is where the next hidden cost creeps in.

You may incur extra costs if you need to hire a vehicle, rent skips, or hire a company to remove it for you, so make sure you factor these potential charges into your budget.

Accidental damages

Another cost you may have to deal with during home renovations is the possibility of accidental damage to your property or materials.

Luckily any damages caused by your contractor will likely not be any added cost to yourself.

However, any damages you cause yourself during your own renovation efforts can raise the cost of your project.

It’s also important to note that damages caused through renovation are usually not covered by home insurance.

Surprise pest damage

Another issue you may run into when renovating your property is uncovering damage that may have been caused by mice, squirrels, termites and other pests.

Fixing the surprise damage cause by pests can end up being an expensive nuisance that you didn’t initially budget for.

If you’re using a builder schedule regular progress updates so you know about any unforeseen developments as soon as possible and can factor them into your final bill.

Last minute changes

Through careful planning and sticking as close as possible to your original plan you should be able to avoid the pitfall of last minute changes driving up the price of your renovation.

Not only will any last minute changes create an unnecessary headache for your contractor, but they can cause the cost of your project to rise far higher than your original quote.

For example, opting for a different variant of your planned materials or different materials altogether can end up costing a lot more than you’d expect.

Wherever possible, keep changes to a minimum, and if you know you’re of a changeable disposition build a contingency into your budget!
 
In summary, if you’ve got a foreign property renovation in the pipeline be realistic with your budget, do your research and prepare yourself for the possibility that costs may creep!
 
Currencies Direct

Currencies Direct

Currencies Direct is one of Europe's leading non-bank providers of currency exchange and international payment services. Since we were formed in 1996, we've maintained our focus on providing innovative foreign exchange and international currency transfer services to corporations of all sizes, online sellers and private individuals. We have also expanded our services to provide dynamic and pioneering "business to business" solutions to help companies, tier 2/3 banks and other non-bank financial institutions to process their international payments. Our headquarters are in the City of London (United Kingdom) and we have operations in continental Europe, Africa, Asia, and the United States. Currencies Direct is jointly owned by private equity firms Palamon Capital Partners and Corsair Capital.

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