June 12th, 2020 in

|   0 comments

Cost to renovate a house: Interior, Exterior and Room wise split-up

The cost to renovate your house can range from $20,000 to $300,000 or even more if you are willing to burn cash to ready your home.

Don’t panic the 6 figure, your renovation project might not require that big a budget. In fact, most renovation projects in Australia costs around $100,000 for a 3-bedroom house.

So here is a complete guide to finding the budget for your dream home. If you don’t have a renovation idea in mind, it is still advisable to know the basics first and then find a design that fits in the budget.

house fund

Renovation cost per square meter

The renovation cost per square meter will give you an approximated figure on how much you will be spending on your house.

According to industry data, the average cost to renovate a house is between $2,000 to $2,500 per square meter here in Australia. In my experience renovating custom projects, the price can go up to $4,000.

How do I get to this number? Well, I have taken all the financial data from every house I have renovated over the last 20 years and the average from all of my projects is closer to $3,000.

That takes into consideration that most of my renovations were custom designs by architects and usually involved putting a second story on a single-story home and fully refurbishing the existing dwelling.

You can get project home builders that pump out the same design over and over for as low as $1,500 per meter square. But if you are on this site you are most probably not looking for that option.

Now, is calculating the cost per square meter the best way to estimate what your renovation project will cost you? In my opinion the answer is NO!

So, how else to estimate the budget by yourself.

Cost Calculators? Yes, they can be helpful to an extent. But most of them generalize the amount and do not provide options to select every varying factor.

Or you can handpick the elements and rooms to be renovated from the list below and nail the budget.

 

complete bathroom renovation project

Interior renovation: Room wise split-up

Do you know the kitchen and bathroom are the most renovated rooms in the house? Not only it has the most potential to be damaged and look outdated over time, it is the most valued areas home buyers look into as part of home evaluation. They are also the most difficult rooms to renovate that requires many different tradesmen.

Kitchen renovation cost: $10,000 to $45,000

This is will factor in the costs of countertops, kitchen appliances, cabinets, and the labour involved in the relocation/re-laying of pipes and electric line.

Bathroom renovation cost: $10,000 to $40,000

The average bathroom renovation expense is around $30,000 for a modern bathroom with bath. Though there isn’t much to buy new, the tiling across the wall and floor, resurfacing the bathtub and many other things bloat the expenses.

Living room renovation cost: $10,000 to $15,000

The most viewed room of any home. Though there isn’t much except furniture, the expenses are directed towards interior design and décor to give a good impression.

Bedroom renovation cost: $2,000 to 25,000

You can do just the paint and flooring for $2,000 or go full on to get a fresh look for $25,000. The price can go up to $35,000 for en-suite bedroom.

Laundry and wash area renovation cost: $15,000 to 20,000

There is not much to choose in this small portion of the house. You can do a luxury laundry renovation for $2,000 more than regular.

 

 

 

Exterior renovation:

Exterior renovation and maintenance is something not many touch unless they are planning to sell the house. But it shouldn’t be the case. You must take care of the exterior paint and garden from time to time.

Exterior painting cost: $10,000

An average-sized, single storey 2/3 bedroom house costs no more than $10,000 for painting the exteriors. If you factor in the recladding and insulation work you might expect a bill around $35,000.

Garden and deck renovation cost: $2,000 to $10,000

Depending on the surface area of the garden and deck you will have an expense lower than 10,000 for landscaping, basic light setup and fencing. For additional elements like an outdoor kitchen, BBQ or bar you might have to go beyond the budget.

Ventilation system cost: $2,000 to $5,000

One of the cheapest in home renovation is the roof ventilation replacement.

Roofing cost: $10,000 to $20,000

The cost of taking down and replacing the roof is going to largely vary with the choice of material. Corrugated Iron Roof is estimated to cost around $15,000.

home exterior

Home extension:

Some times you do not stop with the house renovation. You might need to add an extra room to accommodate the new member of the family or add a pool. Either way here is the cost involved in home extension projects.

Keep in mind this is going to bounce your budget way more than you think.

Swimming pool installation: starting from $35,000

The starting range of 7.5*4 meter fibreglass pool installation is going to cost you $35,000 without taking into account the cost of covers, decking, landscaping, etc. Concrete pools of the same size cost around $55,000.

Loft conversion cost: $200,000 to $450,000

This one thing is going to cost even more than the whole renovation budget itself. But it is an easy home extension if you need an extra room.

 

Miscellaneous renovation cost that you must know:

Individual prices of some of the common renovation work carried out in a house is listed so that you can add them in your budget. Please note, these work costs are already added in the room wise price if they are required. If you are looking for doing any of the specific tasks but not the whole room, only then add these costs to your budget list.

Designing: 5% to 20% of project value

The design and planning play a larger part in the pre-construction phase that can not be overlooked. You will most often require an architect or builders help to plan your home renovation. The price ranges from $1200 to $1800 for new builds and house extensions.

License, permits, insurance and other documents:

Contact your local council for more information.

Double glazing cost for the bathroom: $10,000

It can almost reduce the expense by half otherwise spent on buying new joinery.

Asbestos removal cost: $500 to $9,500

An unsafe process handled only by professionals will vary depending on the size of the house.

Rubbish removal: $300 to $2000

Skip bin is a buffer to store the demolished remains and other waste from the construction site that will later be disposed of. Depending on the waste, you need to order a bigger skip bin.

Flooring installation price: $50 to $200 depending on floor type

Carpet installation price: $175 to $750 for installation alone.

Interior house painting: $600 to $3,400 including labour and paint.

Interior decoration: $170 to $320 per hour (decors to be bought separately)

 

The budgeting doesn’t end here. There are some un-accountable expenses like transportation of materials and then there is the risk factor – unexpected expenses. Every project is different and has its own unique cost factors such as:

  • Access to the property, is it easy or hard to get materials and trucks into?
  • Is the renovation just a square box added to the back of the house, or an architectural masterpiece?
  • Are there any specialised building materials being used?
  • Are the finishes high end or budget?
  • Will major structural modifications be made to the existing house?

The above are just a handful of questions that you need to ask yourself before you take the cookie-cutter approach of adding a cost per square meter to your design. Leave a good headroom of 5-10% of the total cost for such expenses to avoid nightmares amidst construction period.

The geography of the house is a varying factor that you need to take account of while budgeting. It reflects in the cost of material and costs involved in licensing and buying permits and most of all labour costs. For example, the kitchen renovation labour costs an average of $50 in Queensland compared to $80 in New South Wales.

 

So, what is your budget?

Is the number bigger than you anticipated? It is to most of us. The main reason being the numerous renovation TV shows we are used to.

It doesn’t mean renovation shows are false either. Remember they do most of the work by themselves and do not have a profit margin at all. I know you are already thinking about DIY home renovation. But wait.

 

DIY home renovation

DIY home renovation: Things to know before you start

Taking responsibility and doing as much work by yourself is the best way to save money and get more involved in your home renovation project. But there are some caveats.

  • Construction is not easy. You need proper training to do work with the same quality as professionals.
  • Even with utmost dedication, you need to draw a line. You can’t take responsibility for all of the work. Speciality work like plumbing, electrical and Asbestos removal requires proper licensing along with online courses and training.
  • You need to spend money and time in the pre-construction phase if you are serious about taking complex DIY renovation work. The money you need to spend on licenses is going to be lesser than that you pay to the professional otherwise. But make sure you have enough time to spend on learning and on the site, especially if you want to be an owner-builder. Owner builder has a responsibility equal to the fulltime job of a building contractor.
  • With all that set, the risk of falling is higher when you swap out professional workers with yourself. So, have a larger contingency fund. Take proper insurances and be prepared for any mishaps.

My advice is to take DIY work only if you feel so short on funding and have plenty of time in hand.

 

Final thoughts

To wind it up, there is an easy and straight forward way to get an accurate figure or even a ballpark cost before starting your design is to talk with two to three professionals (I.e. Architects or Builders) about what you are proposing to do and take the averages of the estimates to get a starting point.

If you proceed to the next stage of getting your concept plans drawn, this will be enough for you to get tenders on before you move onto the final design, and give you room to scale up or down depending on the estimated costs.

Have you recently been given a square meter price to renovate your home? If so tell us about your experience in the comments section below to start the conversation.


 

LEARN HOW TO RENOVATE YOUR BATHROOM LIKE A BUILDER & SAVE $$$

Online Course Available Now

The super-simple, step-by-step process I use in my business to renovate bathrooms fast and on budget.

GET INSTANT ACCESS TODAY

Yes, I Want to Know More!

March 28th, 2020 in

|   1 comment

How long does it take to renovate a house? Renovation time calculator

The average duration for home renovation takes between 4 to 8 months. There are exceptions to this rule when the projects are very small or big in size, but most home renovations will fall somewhere within this timeline.

If you are fully renovating or remodelling your house, chances are it could take up to 6- 8 months or even more if you are adding large spaces with architectural detail. In case of renovating kitchen and bathroom with some minor cosmetic changes then it could be a just matter of few weeks.

 

James Construction Timeline method: calculating home renovation durations made easy

With more than 20 years of experience in the construction field working in hundreds of construction and renovation projects, here is what I found.

For a full-time builder or project manager, for every $80,000 of work that needs to be performed, a time commitment of 4–6 weeks is required. This does not include any of the upfront pre-commencement work; we will touch on these time frames later. This is called James Construction Timeline Method (named by myself) or simply JCT method.

I.e. if you were looking to spend $150,000, build time could be between 7.5 weeks and 11.25 weeks, or if you are spending $500,000 (Calculate as follows -> 500K  -:- 80K = 6.25; (6.25 * 4) weeks to (6.25 * 6 ) weeks = 25 weeks to 37.5 weeks approximately 9 months).

 

Note: This is not an exact scientific derivation but looking back over the data from my completed projects, I can say it comes pretty close to this figure.

To clarify the above I’m only talking about build time on site, I.e. When you strike your first blow with the hammer to vacuuming the dust off the floor for the last time.

You still have to factor in preliminary work that includes design, planning, getting permits etc.

 

The preliminary stages for most projects (if done correctly) can and probably should take longer than the construction time on site.

house renovation

What other time needs to be factored in?

Before you strike your first blow there are 3 critical stages that need to be done before and 1 more stage after it. So, that’s a total of 5 Key stages that all my renovation and builder’s course covers.

These key stages are listed below with some average times for how long each stage may take –

 

  1. The Research Stage – 2 weeks to 2 months or more.
  2. Plan Stage – 2 months to 6 months or more.
  3. Pre- Construction Stage – 3 months to 6 months.
  4. Construction Stage – Use JCT method to find the time duration for your construction project. ((4 weeks to 6 weeks on average per $80K of building cost).
  5. Project Completion Stage. – 3 months.

 

If you are reading this article, you are probably in one of the first three stages, more than likely in the initial research stage.

The Research stage

The Research stage is when you have first decided that you want to renovate your property and start to do your homework. You will start by working out what you can afford to spend. Start looking at the style of renovation you want. Search blogs and social media for ideas and inspiration, talk with other people who have renovated and generally start to build an idea in your mind of what you want.

Depending on how much homework you choose to do you could take anywhere from 2weeks to 2months for this stage.

TIP – Keep an organized filing system during your Research Stage where you can store all your information and ideas that you come across. This will help to communicate your ideas in the next stage of the process.

 

The Plan Stage

Plan Stage. This stage is where you get your ideas out of your head and down on paper in some form of a plan or sketch. So how long should this stage take? well depending on how many revisions you go for your initial concept drawing and the scale of your project it could be anywhere from a few months to six months or more.

I know 6 months might seem so distant. But going back and forth between a drafter or architect and your friends and family is a long process.  It took 6 months to get our plans ready for the “Small Space Big Build Project”, and over 12 months in total before we were ready to start on site.

 

The Pre-Construction Stage

Pre-Construction Stage consists of getting approvals from the relevant authorities. Here in Australia it is referred to as a Development Application (or DA for short). Along with getting your approval granted there is also time required for mapping out the timeline and schedule for your works, organizing trade contractors and material supply quotations and the selections process.

In my opinion, the Pre-Construction Stage is the largest most time-consuming stage out of all the 5 stages. You really need to put a lot of work in to ensure smooth running of the project. In retaliation to timing, t really does come down to how complex your project is. If you are doing a relatively small renovation (i.e $100K) 3 months may get you out of trouble. But for larger projects,6 months’ worth of planning may be closer to what it actually takes.

 

The project completion stage

Lastly after the Construction Stage is completed the final stage of Project Completion Stage comes. This stage takes into account all the requirements for obtaining final sign off by the relevant authorities. You are required to obtain an occupancy certificate upon completion of the construction works. It is not required for smaller renovations where a DA approval is not required.

There are also warranties and defects liability periods that you should enforce with your tradies and contractors. Some defects liability periods on average are around 3 months after the contractor has completed their work. So, I recommend allowing another 3 months at the end of the renovation to encompass all of the warranties and liability periods.

 

There you have it. I know it’s a lot of info to take in, but we are only just scratching the surface. Each one of these stages will have its own complexities and special requirements based on your own individual project. It’s my job to try and lay out as much of that information as possible.

 

I hope this information comes in handy, please feel free to drop any questions in the comments section below.

 

Until next time, happy renovating.

 

James Mason.


 

LEARN HOW TO RENOVATE YOUR BATHROOM LIKE A BUILDER & SAVE $$$

Online Course Available Now

The super-simple, step-by-step process I use in my business to renovate bathrooms fast and on budget.

GET INSTANT ACCESS TODAY

Yes, I Want to Know More!

September 4th, 2019 in

|   2 comments

Interview with professional mortgage advisers Mandy Taylor and Greg Wilkinson.

Recently I sat down for a coffee with Mandy Taylor and Greg Wilkinson from Smart line mortgage advisers to chat about what it takes to obtain finances for a renovation project. I fired a few questions at them that I thought would be beneficial for first time renovators and owner builders.

But before we jump into the questions let’s learn a little more about Mandy and Greg.

Mandy Taylor

Mandy grew up in Scotland and from her early teens helped her mum in the local building society working with customers to help them buy their first homes.  After moving to Australia in 1991, she has worked with companies such as CBA, St George and Bank of Queensland heading up lending teams throughout the North Shore and Northern Beaches & Greater Sydney Region.

When she’s not working with loan clients, she’s marrying them in her capacity as a marriage celebrant….. one of the few women who marry a number of men each year….to other women!

If she’s lucky to have spare time, it’s spent in the garden, fishing or sharing quiet time with her partner and adult kids.

Greg Wilkinson

Greg has spent all his life in Sydney and grew up in the Ryde area.  Worked for CBA and spent a short stint with Bank of Queensland before becoming a loan writer for another franchisee.  Decided over a year ago to become principal of his own franchise of Smartline Personal Mortgage advisers and has never looked back.

Greg is an avid NRL Bulldog fan (don’t hold that against him).  Loves his cricket, golf and plays recreational baseball with a couple of teams in Sydney. His favourite food is sausages and he reckons a good aussie beef snag covers all 3 food groups every day of the week!

Owner Builder Finances

If an owner builder wants to obtain finances for their construction project here in Australia, is there any particular steps or processes they need to follow to apply for this type of finance?

Preparation….preparation…..preparation and articulation are key!  Before sourcing finance it’s imperative to get informed about the different licenses required from the various government pages.

In terms of lenders and what they may be looking for:

  • A copy of your detailed project.
  • Resume of you and those you intend to employ to help you complete the build.
  • Your building plan with specific costing involved.
  • Estimates and quotes for work to be completed.
  • Timeline of your build (they prefer 12- 18 months max).
  • Extra funds you may have to complete the build if you go over budget.

Few lenders will lend for owner/builders and those that do often may reduce the LVR (loan to value ratio) as low as 50%.  Part of preparation and planning is to speak with a broker to find out the difference ratios for lenders who will lend for owner/builder projects.

 

What other types of finances and options are available for people who are looking to renovate their home?

Some renovations may not be extensive or require building licenses etc.  Depending on the cost, you may simply need a ‘top up’ on your existing (eg $50,000) home loan which can be done relatively quickly or if a small amount perhaps a personal loan would suit (less than eg $10,000).

If neither the top up or personal loan is enough for you to renovate, then using the equity in your home to access more cash may be the way to go as long as the repayments can be made and other criteria met.  Each loan would be on a case by case basis.

Some lenders will cap the amount of cash out required as well as stipulate maximum LVR.

 

What advice and tips would you give someone who is obtaining finance for their first renovation project?

 

  • Speak with a broker and find out first of all the likelihood of being able to obtain the funds and how to go about it.  Whatever the amount is, it’ll help you work out a budget.  Knowing what you’d like to do versus what’s financially possible could impact your plan either way.
  • Plan the renovation and speak to experts well beforehand.
  • Plan the budget and costs, get quotes.
  • Add extra into the budget to allow for the ‘unforeseen’ problems/issues.
  • Depending on the type of renovation, take into consideration the time of year and expected delays – this can often cost more as you may need to employ more people to get job done on time.
  • Research on following links as a starting point to help guide you –

http://housinglocal.com.au/renovating.aspx

http://www.yourhome.gov.au/you-begin/renovations-and-additions

 

What pitfalls should people be mindful of when obtaining any type of finance?

 

  • “Do your numbers” and don’t stretch yourself to the maximum leaving you short of cash if something goes wrong.
  • Speak to a broker as they have more lenders to choose from that your local bank, don’t feel ‘stuck’ with your own bank.
  • Speak with a broker who has experience and not just out to make a quick sale at your expense.
  • Whatever you’re obtaining finance for, if you can’t afford it, look at alternatives as the financial stress isn’t worth it, you may need to change your strategy and ideas.
  • Seriously consider life, income and loan insurance.  Most people assume their insured via their superannuation but not necessarily and at the end of the day, bad things happen to good people.  No point being over insured, however to ignore it is working on the ‘hope nothing goes wrong’ basis.
  • Ensure you don’t have to live on bread and water budget over the next 10 – 30yrs in order to get the amount you want – be realistic.
  • NEVER FEEL THAT YOU’RE BEING RUSHED INTO SIGNING UP FOR A LOAN nor that “you’ll get that investment quicker as I can get my ‘loan person’ to sort you out right now.”
  • Stay in control and avoid getting emotionally attached to the ‘item’ you need the loan for.

 

Do you have any tips & advice for first time renovators?

We cannot stress enough the importance of the following:

PLAN……PREPARE…..RESEARCH….ASK ADVICE OF EXPERTS ….RESEARCH SOME MORE ….BE REALISTIC

Renovation finance advisers

 

Well there you have it, some great advice from Mandy and Greg, and a big thanks for the time to answer some of my questions guys, much appreciated!

To stay up to date with what Mandy and Greg have going on, please visit – Their Smartline websiteFacebook page or Twitter account.

If you have any questions or stories related to finance please feel free to drop them in the comments section below or contact the guys directly and I’m sure they will be more than happy to help out if they can.

Till next time, happy renovating!

James Mason.

 


 

LEARN HOW TO RENOVATE YOUR BATHROOM LIKE A BUILDER & SAVE $$$

Online Course Available Now

The super-simple, step-by-step process I use in my business to renovate bathrooms fast and on budget.

GET INSTANT ACCESS TODAY

Yes, I Want to Know More!