To estimate the cost of renovating a house, we need to understand the costs that go into each room. From the size, to the fittings and materials, all these details will impact the final amount.
This article will delve into the various facets of home renovation costs, exploring different room-specific expenses, the impact of geographical location on pricing, and strategies to manage and potentially reduce these costs.
We’ll also touch on the costs of extensions and the importance of getting accurate cost estimates.
Understanding Room-Specific Renovation Costs
Renovating distinct areas within a house comes with its own set of financial considerations, each influenced by factors such as size, materials, and labour requirements.
According to Kieran Lewis, a renovation specialist at JDL Constructions in Brisbane, the estimated budget breakdown for extensive room renovations is as follows:
- Kitchen Renovation: Ranging from $25,000 to $50,000, kitchen renovations may encompass new cabinetry and benchtops, demolition of existing structures, modifications to electricity and plumbing points, structural works to create an open plan, and the inclusion of new fixtures and appliances.
- Bathroom Renovation: A budget between $15,000 and $30,000 is typical for bathroom renovations, which may involve stripping out the existing bathroom, adjusting wall frames, installing new floor and wall tiles, updating tapware and vanity, and incorporating a new showerscreen and mirror.
- Living or Dining Room Renovation: Costs for these spaces can fall between $10,000 and $15,000, potentially involving the removal of load-bearing walls for an open-plan space, upgrading lights and power points, and introducing new floor coverings and a fresh coat of paint.
- Bedroom Renovation: Generally, bedrooms may cost between $2,000 and $5,000 to renovate, which could include the installation of storage spaces like wardrobes, upgrading power points and lights, and applying a fresh coat of paint.
The Impact of Location on Renovation Costs
Geographical location plays a pivotal role in determining the cost of renovations in Australia. For instance, Suncorp Bank lending data indicates that while the Australian average for home renovation costs is $63,118, the average for households in Victoria is notably higher at $71,067, whereas in Western Australia, it is lower at $54,377.
“This variation underscores the importance of considering local factors, such as labour and material costs, which can fluctuate significantly across different states and territories.”
Moreover, the style of the house being renovated can also influence the overall cost. As per Kieran Lewis, houses built pre-1946, typical in Queensland, are predominantly timber and demand a larger labour component compared to houses built 20 years ago.
Therefore, understanding the structural nuances of your property and the prevailing costs in your specific location is paramount in establishing a realistic and manageable renovation budget.
How to Manage and Potentially Reduce Renovation Costs
Get many quotes: Engaging in thorough research and obtaining multiple quotes for each aspect of the renovation, from materials to labour, enables homeowners to make informed financial decisions.
Ask about a staged reno: Additionally, considering a staged renovation, where the project is broken down into manageable phases, can alleviate financial pressure and facilitate better control over expenditures.
Ask about cheaper material alternatives: Opting for cost-effective alternatives without compromising on quality is another viable strategy. For instance, choosing laminate benchtops instead of stone or utilising flat-pack cabinets can offer a stylish aesthetic without the hefty price tag.
DYI where you can: Embracing a hands-on approach and undertaking certain tasks, such as painting or demolition, can also significantly reduce labour costs. However, it’s imperative to recognise the tasks that necessitate professional intervention, such as electrical and plumbing work, to ensure safety and compliance with Australian standards.
Costs of Adding Extensions
Making extensions beyond the footprint of a home will evidently raise the costs. The cost of extensions can be influenced by a myriad of factors, including the size, design complexity, and materials used.
“According to Canstar, ground floor extensions in Australia can range from $1,350 per m2 to $2,100 per m2, while second-storey additions can cost between $2,200 and $3,000 per m2.”Canstar.com.au
It’s crucial to note that extensions not only involve construction costs but also additional expenditures such as council fees, engineering and architectural designs, and certifications. Moreover, the potential need to relocate temporarily during the construction phase can also add to the financial burden.
Therefore, understanding the comprehensive financial landscape of undertaking extensions, from initial planning to completion, is paramount to ensure that the project remains financially viable and aligns with the anticipated return on investment.
Explore our cost of house extension per sq metre article for more!
How to Achieve Accurate Cost Estimates
Accurate cost estimates encompass a detailed breakdown of all anticipated expenses, including materials, labour, permits, and unexpected contingencies.
Engaging with various professionals, such as builders, architects, and quantity surveyors, can provide a comprehensive insight into the potential costs involved, ensuring that the budget is realistic and reflective of the project’s scope.
It’s also imperative to factor in potential hidden costs, such as structural issues, outdated wiring, or plumbing that may need upgrading, which might not be evident at the outset.
Additionally, considering the costs of temporary accommodation, storage, and potential eating out or takeaway expenses, if the kitchen is being renovated, ensures that all financial aspects are accounted for.
Utilising online tools and calculators, and seeking advice from professionals who have undertaken similar projects, can also provide a ballpark figure to initiate the budgeting process.
Exploring Financing Options for Your Renovation
One prevalent method is utilising the equity built up in the home, where the difference between the home’s value and the mortgage amount can be used to fund the renovation. This option is often favoured due to typically lower interest rates compared to other loan types.
Alternatively, a construction loan, which provides a staggered payment plan in alignment with various construction phases, can be a viable option, particularly for extensive renovations or rebuilds.
Personal loans and credit cards may also be considered for smaller projects, given their ease of access and quick approval times. However, it’s crucial to be mindful of the higher interest rates associated with these options.
Moreover, government grants and incentives, such as the HomeBuilder grant provided by the Australian Government, which offers $25,000 towards building a new home or substantially renovating an existing home, can also be explored to alleviate financial burdens.
It’s crucial to thoroughly research and understand the eligibility criteria and application processes for such grants to effectively leverage them.
Suggested reading: Want to up the value of your property? Soho’s explores how to renovate for profit.
FAQs on Cost of Renovating House:
How much does it cost to renovate a full house Australia?
The cost of renovating a full house in Australia varies depending on the size and scope of the project, the materials used, and the location of the property. However, according to the Housing Industry Association, the average cost of a full house renovation in Australia is $200,000.
How much does it cost to fully renovate a house in Sydney?
The cost of fully renovating a house in Sydney is typically higher than the average cost for the rest of Australia. This is due to the higher cost of living and labor in Sydney. According to Renovation Junkies, the average cost of a full house renovation in Sydney is $300,000.
How much does it cost to renovate a 3 bedroom house in Sydney?
The cost of renovating a 3 bedroom house in Sydney varies depending on the specific details of the project. However, according to Suncorp Bank, the average cost of renovating a 3 bedroom house in Sydney is $150,000.
How much does it cost to renovate a unit in Australia?
The cost of renovating a unit in Australia varies depending on the size and location of the unit. However, according to Renovation Costs, the average cost of renovating a unit in Australia is $100,000.
How much does it cost to renovate a bedroom in Australia?
The cost of renovating a bedroom in Australia varies depending on the size and scope of the project. However, according to Habitat magazine, the average cost of renovating a bedroom in Australia is $20,000.