The ABC’s of Budget Setting
What does your ideal space look like to live, work and play in paradise?
Buying a property in Mexico? You are just a few steps away from creating the dreamlife of work, live play in paradise! The first question new owners ask is “how much should we allocate for furnishings?” In fact, furnishings are just one part of the expense. There’s also window coverings (blinds, solar control and curtains), interior paint, appliances, electronics, bedding and bath kits plus kitchen and tabletop essentials to consider. Not to mention cleaning and laundry supplies, storage and the mostly cost of utilities, maid service and maintenance.
The process of projecting your investment funds post-purchase can easily be demystified by considering the ABC’s of Budget Setting. Take a look:
Access the finishes, tilework and countertops of your property.
A. ACCESS the finishes: look at the quality of the finishes like tilework, countertops, cabinetry, sinks, faucets and flooring. Just as in the auto industry, if you buy a Rolls Royce you certainly would not load it with after-market VW parts. So keeping in mind the quality and style of your build will help you match the furnishings to the finishes.
Local retailers generally focus on a particular decor style and a certain pricepoint to satisfy their target customers. A department store retailer like LIVERPOOL serves a wide population of families and homebuyers across Mexico, and as such carries basic goods appealing to a wide market segment. Specialty retailer Casa Pueblo, focuses on a high end clientele and offers special custom pieces made to order for luxury villas and upmarket condos. CRATE Interiors offers a unique mix of products from over 50 brands spanning GOOD - BETTER - BEST quality levels and pricepoints, so our clients can select from any of these options to fit a particular budget or project.
B. BASE your budget on property price: A $1M villa is a very different property from a $500K condominium. Each one has a different equity, resale value and use. Basing your furnishings budget on a percentage of the property value is a good rule of thumb and helps you determine a target for the overall project. A typical $1M villa could support a budget of $100K and a $500K condo may require $50K in furnishings and decor to bring it to market standards.
Generally owners who are planning to use the property solely for personal use are willing to spend a little more on the items important to them, to get the quality and style that suits their personal needs and aesthetic. Investors buying for income and rental purposes are often more concerned about wear and tear, so quality specs and durability are most important in the furnishings selection process. Many of the brands offered by CRATE Interiors feature collections that meet commercial or hospitality standards, and are ideal for hotel or rental property usage.
The total square footage and number of furnishable spaces are important budge considerations
C. CONSIDER the square footage: the total square footage of your new place is definitely a factor in budget setting. Also the number of furnishable spaces. Don’t forget terraces, loggias and even smaller balconies are furnishable spaces, along with bars and countertops that require stools or other seating to accommodate guests.
A typical residence will have a living area, dining room, kitchen, master bedroom, guest suites and one or more terraces or outdoor areas. Your total budget should be divided by the number of furnishable spaces to give you a rough guide for what you’ll spend per room.
S. SCALE is important too: The “S” in ABCs is the final consideration for a well balanced budget. The scale of the property, i.e. size of each room is a huge factor. Larger rooms can accommodate furniture that is more generous in scale, with wider arm rests, thicker upholstery lines and bigger rugs. Our Beachhouse and Tropical Luxe themes are longstanding popular decor styles for villas and expansive indoor outdoor living in paradise.
A small beachfront condo is based on a more compact footprint and requires cleaner, more diminutive pieces to fit the size of each room. Simple furnishings from the CRATE Interiors Mid-Century or Modern Urbanite decor themes complement the style and scale of these popular spaces.
Keep your budget and project on track. Set up your FREE DESIGN CONSULT today!
Working backwards, you will easily be able to keep your budget and project on track using these handy guidelines. Our furnishings and interior design projects always start with a FREE DESIGN CONSULT, an intake session with owners and a budget setting conversation using our proprietary Budget Tool. This calculator ensures your real estate investment stays in line with market values and the outcome is a move-in ready residence in paradise...now that’s a CRATE idea!
