Budgeting Tips for a Home Renovation

 

It is getting too expensive to move, hence the soaring popularity of renovating throughout the country.

According to a recent survey of 2,017 Australians by finder.com.au, one in 3 homeowners, or 34%, have renovated their property. This is equivalent to over 3 million homes.

 

Renovation Costs
Using data from the Australian Institute of Architects, here is a price comparison to understand the actual costs of different home renovations, at “basic,” “standard” and “high” levels, depending on the cost of designs, materials and labour used.

Data revealed that the most expensive project is attic conversations, costing from $52,464 for a basic budget, to $91,597 for a high-cost undertaking. The small budget requirement goes to bedrooms and laundries, each priced below $10,000 for a basic facelift.

 

Renovation Basic Cost Standard Cost High Cost
Bathroom $20,962 $38,696 $54,804
Bedroom $8,948 $13,786 $18,612
Kitchen $23,264 $42,017 $69,738
Room renovations $10,514 $16,586 $22,648
Garage (extension) $15,131 $28,076 $39,987
Interior plastering $25,220 $28,897 $32,536
Laundry $9,172 $15,466 $21,752
Ensuite $16,618 $25,544 $31,692
Attic conversion $52,464 $66,073 $91,597
Floorboard restoration $10,856 $27,689 $44,518
Roofing (tiled) 18,860 $23,690 $28,492
Room extension(ground) $38,475 $62,767 $83,865

 

When setting a budget, it helps to know what the average cost of your renovation is, though it is almost impossible to forecast the actual renovation cost.

In most cases, the costs of materials and labour may be higher than you expected, or something unplanned may occur.

The one thing you need to avoid is to have cashflow issues in the middle of your renovation, or to sacrifice something that is in the plan, so allocate at least an additional 15% for unplanned expenses.

Experts recommend including some DIY to save money.

These could include minor projects that don’t require professional tradespeople such as painting, landscaping and small cosmetic changes, including replacing doors and handles.

Do your assignment
These days, time poor people commit the mistake of getting only one quote. It is important at least three quotes to make sure you get the best price and the right person for the job.

Renovation can add value to a property, but how much? The value is determined by how extensive the renovation is.

For instance, building an extension, such as another bedroom, will likely add more value than doing cosmetic changes in the kitchen. However, the kitchen is the heart of a home, so it can also increase substantially more value.

Between 10% and 15% can be added to a property’s original value by a well-planned renovation. This is particularly true if you intend to keep the property for at least five years.

It is also recommended that you speak to a property specialist about what the market wants. Knowing the market trends and what buyers are searching for can also help you identify what makeover job will add the highest possible value to your property and at what cost.

If you’d like my personal opinion, call today and book your appointment.