There is a lot to consider when deciding whether to renovate your home.
Firstly will it be a structural renovation or a simple cosmetic makeover? How much should you spend and where should you spend it?
As a home owner you should avoid taking risks when renovating and spend your budget wisely. This is to make sure you don’t spend more on the improvements than the value it will add to a property (overcapitalising).
The general rule of thumb when renovating is to spend between 5 and 10 per cent of the purchase price. For example based on a property valued at $600,000 the cost of your renovating budget shouldn’t exceed more than $30,000 – $60,000.
While this is a good guide there are other factors to consider. Biggest question being, is it a structural renovation or cosmetic makeover?
Cosmetic
If your renovation is cosmetic expect to budget for painting, updating bench tops, flooring, basic hardware or lighting, landscaping and anything that is relatively simple to do.
Structural
Structural renovations on the other hand can be quite costly as it may involve changing the floor plan, adding walls, plumbing and electrical work.
Another consideration; are you doing one room or a full house renovation? Obviously renovating the whole property will cost more, but these days focusing on the main room in the house can potentially take up the entire budget too.
In this article we are going to break it down room by room to find out how much you can expect to spend on your renovations.
Kitchen
The kitchen is the heart of every home. Not to mention, they sell houses. So it’s no surprise it’s generally where the most amount of money is spent.
Setting a budget for your kitchen renovation and staying within it sounds easy, but it’s harder than you might think.
The average cost of an upmarket kitchen is more than $60,000.
Take care with the budget in this room as over spending is a common mistake and you might run the risk of over capitalising. Stick to the general rule of thumb and spend no more than two per cent of your property’s value.
- Small kitchen 10m2: $12,800 – $15,200
- Medium kitchen 15m2: $19,200 – $22,900
- Large kitchen 20m2: $25,600 – $35,500.
Explore our guide on kitchen renovation costs for more detailed information!
Bathroom
The average cost for a bathroom renovation is around $10,000 with most homeowners spending between $5,900 and $13,997.
You can also spend as little as $3,500 updating the essentials in a small to medium sized bathroom. If you have a large bathroom, you could potentially spend anywhere over $30,000.
- Small bathroom 6m2: $15,180 – $18,133
- Medium bathroom 9m2: $22,770 – $27,200
- Large bathroom 12m2: $25, 360 – $36,266
Living space/lounge room
Along with the kitchen your living space has to have the wow factor. It sets the tone for your home and how the rest of the house is defined.
Feature walls and key pieces will be on display, so the budget will vary depending on the style and materials used.
If you’re renovating to sell, people will be eyeballing this room the most to see if they can gather around as a family to spend quality time here. Comfort and functionality is key to renovating this room.
See below for an estimated budget to renovate a medium to large living space of 4.5 square metres.
- Budget – $14,445
- Standard – $15,795
- Premium – $17,145
Bedrooms
Bedroom renovations can be as simple as new paint and flooring or they can be as complicated as adding more space.
What your home needs, what your family needs and what you can afford will determine your bedroom budget.
- Average supply and install flooring: $50-$200 per square metre
- Average size bedroom to paint (20m2) ranges from $380-$790. DIY, this can cost between $200-$300.
Blowing out the budget is everyone’s biggest fear when it comes to renovating, and rightly so.
Even if you follow all the rules and read all the right blogs, it is wise to have a contingency fund to cushion the nasty little surprises that can arise.
Set your budget and choose your tradesmen wisely. Get references and check them. Loose the phrase “while you’re at it”, because “while you’re at it”, will end up costing you thousands more.
