There’s a lot to consider when deciding whether or not to renovate your first home; from how much you can afford to spend, to how much you should spend – and where.
So, how much does it cost renovate a house? Let’s start at the beginning.
Renovation costs: How much should I spend?
As a first home owner you should avoid taking risks when renovating and spend conservatively. To make sure you don’t overcapitalise (when you spend more on a house than what you can sell it for) it’s a good idea not to spend more than 5% of the purchase price on renovations.
So based on the current mean national house price of $679,100 (source: ABS), the cost of renovating a house or your renovation budget shouldn’t exceed much more than $33,955.
A well-planned and executed renovation can add up to 10% to the value of your home, especially if you hold onto the property for five or more years. So by spending $33,955 renovating your average $679,100 home you could potentially make more than $60,000 – double the money you invested.
Should I renovate?
Just because you can afford to renovate, doesn’t make it the right decision. Whether you’re considering renovating a house or an apartment, you should consider all the pros and cons before committing your time and money:
Pros
- Added resale value.
- Can make your home more comfortable and improve your standard of living.
- Can save you time and money by renovating instead of relocating. You can avoid all the stamp duty, agency and legal fees that come with moving by remodelling your home to suit your changing needs.
Cons
- Potential to overspend and overcapitalise.
- May have to move out of home while works are being completed (or live in dust!).
What should I renovate?
For the best return on your renovation spend, you should be selective in your renovation choices. Some common value-adding renovation projects include highly-trafficked rooms such as:
Kitchen
- Average size: 6.5sqm
- Average cost per square metre: $2,900 per square metre
- Average renovation cost: $18,850
Do
- Install a canopy rangehood and dishwasher.
- Use stone for surfaces.
- Keep the design open-plan.
Don’t
- Purchase expensive fixtures and fittings.
- Compromise bench and storage space.
- Use an unusual colour palette.
Read more: Island kitchen bench top inspiration
![DIY_kitchen_getty_article](data:image/svg+xml,%3Csvg xmlns="http://www.w3.org/2000/svg" viewBox="0 0 1024 768"%3E%3C/svg%3E)
Your kitchen is a high-traffic area and a value-adding renovation project. Picture: Getty
Bathroom
- Average size: 6sqm
- Average cost per square metre: $3,000 per square metre
- Average renovation cost: $17,400
Do
- Install a frameless glass shower.
- Lay floor-to-ceiling tiles and include a double vanity (if there’s room).
Don’t
- Make extensive changes to the plumbing.
- Replace a combined bathtub/tub with a shower only.
- Overuse mosaic tiling.
Read more: Bathroom renovations for profit
Other renovation works to consider
New flooring
Average supply and install rate: $50-$200 per square metre (depending on material)
Read more: How to: choose flooring for your home
Extra bedroom
Average size: 12sqm
Average renovation cost: $18,000-$24,000
Deck & patio
Average size: 9sqm
Average sqm cost: $350 per square metre (depending on material) for deck; $420 per square metre for patio
Average total cost: $3,150 for deck; $3,780 per square metre for patio
Read more: Outdoor entertaining all year round
Take your time
Although you might not be able to do it all, if you take your time to select the areas of your home that would benefit most from a revamp, you stand to boost your standard of living – and bank balance.
Council fees?
Don’t forget to also allow for council application fees (check with your local council for prices) and budget for an additional 15% on top of your planned costs, so you’re prepared for any unexpected expenses.