Works: how to properly calculate the renovation budget?

Renovation projects often require significant resources that households do not always have at their disposal. However, before committing financing, it is essential to know the budget allocated to the work.

How to define the budget for a renovation?

The need to be accompanied in a renovation project lies in the fact of being authorized or not to estimate the cost of the work to be carried out. Calling on professionals will make it possible to refine each essential expense, hence the importance of asking for several quotes that will facilitate price comparison. It is nevertheless important to select a competent specialist with an established reputation or to favor a professional with the RGE label.

If the renovation is very important, requesting a project manager whose role will be to coordinate the work may be wise. He can also help estimate the budget for the renovations to be carried out and will be required to coordinate the schedule of tasks.

You should know that the average budget to be expected is between €800 and €1,500 per square meter for a 100 m² house.

How to finance its work in the case of a renovation carried out by a professional?

Taking out a loan for work is often the first solution that owners or tenants of a home think of. the work loan can be granted quickly to borrowers wishing to carry out work in their main residence. Obtaining it covers the services of the professionals in charge of the project. Limited to €75,000, this loan provides financing for raw materials or allows construction, expansion, insulation or decoration work, etc. to be undertaken. Its interest rate depends on the profile of the borrower and is generally between 2.5% and 7.75%.

This type of loan, however, implies the justification of the expenses incurred by providing the various documents inherent to the work (invoices, purchase orders, quotes, etc.).

Be careful however, certain conditions are required to obtain a loan such as having stable income and professional situation.

What other types of financing are possible to carry out renovation work?

The “unaffected personal loan” can be a solution adopted in the context of work not carried out by professionals. The borrower is free to use the funds allocated as he wishes and the banking institution is not required to ask him for supporting documents. The annual effective annual rate (APR) remains lower than for a work loan, the costs of files and subscription of a death-invalidity insurance or a guarantee not being required by the bank.

The “revolving credit” or “revolving credit” can make it possible to undertake renovation work. Its principle differs from the personal loan in that the lending organization makes available to its client, and on a permanent basis, a sum that can be used to finance its work. The amount of this credit remains capped. Do not forget that some financial institutions can apply high or even very high interest rates!

How can low-income households finance their renovation work?

There are ways for low-income households to borrow. The zero-rate loan, as its name suggests, generates no interest for the borrower, the latter being absorbed by the State. The conditions of resources are nil, nevertheless, it is granted for a specific purpose: to achieve Works to reduce household energy consumption and greenhouse gas emissions.

Beneficiaries of family benefits have the possibility of accessing the CAF “housing improvement loan” (PAH) if they wish to undertake repair, improvement, sanitation or insulation work heat in their housing. Its rate is capped at 1%.

The approved loan and the loan for social accession are granted by a bank that has signed an agreement with the State and are granted within the framework of well-defined works. The difference between the two lies essentially in the fact that the first is subject to conditions (income, types of work, location of the property), the second is not.