You’ve found your dream property but it needs work. How much is it going to cost? Calculate a renovation budget on the spot to discover if it is worth buying.
Structural or cosmetic renovations
“The easiest way of determining an estimated budget for renovations is to break down the necessary works into either structural or cosmetic,” says Tom Needham from property agency, National Property Buyers.
Cosmetic renovations are easier to estimate. “Painting, replacing flooring, fixing fittings and updating kitchens and bathrooms are generally easier to do for non professionals which reduces costs and quotes are usually easier to source,” says Needham.
On the other hand, structural renovations such as re-stumping, rising damp and extending living areas will require more work and money to carry out. “Structural renovations are also likely to be harder to initially estimate costs as there could be unforeseen problems or difficulties that would need a detailed inspection by a professional tradesperson to assess.”
Rich Harvey, president of the Real Estate Buyer’s Agents Association of Australia (REBAA) says there is no perfect way to calculate the exact cost of a renovation.
“It would be nice to hold up your iPhone and say it’s going to cost this amount to do that work but you won’t know that,” says Rich Harvey, “There are a whole heap of factors to consider. You’ve got to get quotes and the rates tradesmen charge are going to be vastly different and the finishes you are going to use will be vastly different.”
There are, however, some general rules of thumb, says Harvey.
The two main areas you should look at when working out the potential costs of a property renovation are the kitchen and the bathroom.
It’s important to break down the necessary works. Photo: Stocksy
Kitchen renovation costs
The kitchen is one of the best areas you can add value, says Harvey. “The kitchen is the hub of the home and it has got to have enough storage space, bench space and have the right appeal,” he says.
“For a really cheap kitchen renovation you will need to budget between $12,000 up to $25,000 plus,” says Harvey. “It will depend on whether you do a laminated bench top or a Caesar stone bench top; also which appliances and tiles you use and the size of the kitchen.
“Generally speaking you are better off to start again from scratch and rip out the kitchen –because cupboards are really cheap– and put in something with decent storage facilities,” says Harvey.
However, be careful not to overcapitalise if you are renovating a cheaper property, Harvey says. “You can paint the cupboards and tiles and do a really small, simple makeover. You can put on a new bench top and it can look fabulous.”
The latest Houzz Australia 2016 Houzz and Home Report says that when it comes to spending on kitchen renovations — the top home renovation project in 2015 — homeowners spent an average $31,000 on major renovations of a large kitchen (more than 12 square metres) where all cabinetry and appliances were replaced and $21,840 for major renovations of a small kitchen (less than 12 square metres).
What is the average renovation cost when it comes to the kitchen? It depends on whether it was a large or small renovation. Photo: Stocksy
Bathroom renovation costs
“This can be an expensive renovation because you have got to co-ordinate the trades,” says Harvey. “Getting the bathroom light and functional is really key. Pick a colour palette that is harmonious and suits lots of different styles.”
“If you are in an apartment maybe you don’t need a bath and this will make the room seem larger. You can get tile paint as a cost effective way to renovate a bathroom. If you just replace the vanity, the mirror, using tile paint and you replace the shower screen, you could do this for $5000 to $6000.”
In terms of bathrooms, the 2016 Houzz and Home report says that homeowners spent an average of $16,440 on major renovations of a large bathroom in 2015 (more than 5 square metres) and $14,770 for major renovations of a small bathroom (less than 5 square metres).
Landscaping
“If you have got a little terrace and a tiny garden, then the cost is likely to be under $1000 but if you have got a brand new house you could spend around $50,000,” says Harvey. “Allow around $5000 to $6000 for good landscaping.”
You will save money by doing this yourself. “Get a hero tree for the front. A weeping cherry, a Japanese maple or a crabapple tree, something that has the wow factor,” says Harvey. “Planting in symmetry is good. A lot of greenery and mulch makes a lot of difference to a property.”
Be honest about what you are capable of doing yourself. Photo: Stocksy