How Much Will Renovations Cost You?

Nadine Roberts
January 24, 2019

SENIOR PROPERTY CONSULTANT

The results are in.

Australians are still nuts about renovations, confirms the 2018 Houzz renovation trends report. According to the report, more than half of Australian homeowners have spent on average $25,000 on renovations in 2017, with second time homeowners likely to spend twice more than first homeowners.

If you are considering doing some work to your home but are not sure where to start, we have that covered – we looked at renovation trends, how much you can expect to spend, and how to make the best decisions for you.

How much you can expect to pay

There are many factors influencing how much you will spend on your renovations, but starting with how much other people have spent will give you a rough idea of what to expect.

The kitchen was the most renovated room in Australian homes – and rightly so. The kitchen is the heart of many homes, the room where we spend a lot of our time, cooking, sharing food and entertaining. According to the report, you can expect to spend between $12,000-$20,000 on renovating your kitchen. That sum will vary depending on the size of your room and the appliances you choose.

Bathrooms were also high on the list of renovation priorities. Last year Australians spent an average of between $8,000-$13,000 renovating this room.

The living space came second on the list of renovation projects, but at a much lower cost – $3000-$3500.

The laundry update also made the top list, with homeowners spending $2000-$3000 to renovate it.

But just because other Australians spent that much on their updates, it doesn’t mean you should follow. Make sure you tailor your renovations to your needs and your budget.

Get clear on why you’re renovating

Before you jump on the renovation wagon, sit down and answers some questions.

Ask yourself:

How long am I planning to live here? – Maybe you just moved into your forever home. That will likely increase the scope and cost of your renovation project. Or maybe you are ready to move into your next home but want to make your existing property more attractive to buyers. If that’s the case, make sure you talk to one of our agents and get some advice on what is likely to add the most value.

What do I want this renovation to achieve? – Do you need more space, more comfort, some eco-friendly features? Get clear on what exactly you want to get out of renovating.

What will add the most value to my property in the long run? – You might not see yourself moving out for the foreseeable future, but you should still consider how your update will impact the value of your home.

How will the renovation impact my family? – Consider if you need to take time off work, borrow money, or learn new skills if you plan for some DIY, etc.

Once you have some clarity on what your renovations will need to achieve for you and your family, you’re in a better position to make better choices.

Stick to a plan and budget

The Houzz report identified that over the past year homeowners have paid closer attention to their planning and budget, a leaf anyone would be wise to take out of their book. Most of them (87%) paid for renovations from savings rather than taking out a loan.

Once you decide on what and how much you are prepared to pay for your renovations (including a buffer), keep a close eye on how your timeline and budget are tracking. And always be prepared for unexpected circumstances or extras.

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