Are you planning to renovate your home? The renovation costs will depend on the size and scale of the project, the area where you live, and the specifics of your home’s layout. Yet, some basic guidelines can help you estimate how much it will cost to renovate your house.
In this article, we’ll show you how to estimate home renovation costs in Australia and some things to keep in mind before you begin renovating your home.
How much would it cost?
The average cost of a full home renovation in Australia is around $63,000. You can generally expect to pay anywhere from $300 per square metre for small renovations, to $500 per square metre for larger renovations. The cost of materials and supplies will also vary based on where you live in Australia.
If you’re in New South Wales or Victoria, you should expect to pay more than someone doing renovations in Tasmania or Queensland. Also, be sure to take these regional differences into account so that you don’t end up with sticker shock once things start getting underway.
Factors that affect the price of your home's renovation
Every home project is different and has its specific price. But as a general rule of thumb, several factors affect how much your next remodelling job will cost you.
- Size - Renovating an entire house can be more costly than tackling one room at a time.
- Location - The more desirable an area is, or if it’s near popular landmarks or schools, for example, the higher its price tag will be
- Material - Choosing granite countertops over laminate can add thousands to your budget.
- Contractor - A good contractor who knows what they're doing can also make all the difference when it comes to staying on track with your project's timeline and budget.
How to estimate the cost of your home's renovation
- Identify the difference between restoration and renovation. Restoration is any work that preserves or fixes damage; it doesn’t make your house better than new. A renovation is any change that makes your house better—larger, more energy-efficient, more comfortable, or nicer—than it was before.
- Once you know, break down each stage into these categories: labour (payments to contractors), materials (materials for each part of a project) and permits/fees (all government-related fees).
- The next thing you need to figure out is how much time you need for each stage of a project. This is where you have to do some research. If you want to build an extension on your house, you can look at similar projects online and find out how long they took from start to finish as well.
Calculate your labour costs
To create a budget for your labour, first, work out how much you'll be spending on your labour. To do that, add up all of your estimated project labour times. If you're unsure about where to find these figures, reach out to someone who has done a similar job or contact tradespeople directly for an estimate.
Divide your total labour cost by two and you'll have your daily rate. Now multiply that number by 365 days and divide it again by 12 months to get an annual figure for your labour cost.
Add everything together to get a ballpark figure
First, consider everything you're going to change: walls, roof, electrical system, and plumbing. By looking at quotes for similar projects from your local tradespeople, you can get a ballpark figure of how much all these things will cost.
If you're putting an addition on your house or doing a major overhaul on it, add those additional costs to your total budget. You can also ask family members and friends for recommendations of trustworthy people they've worked with before. This can save time and money down the road.
Think about your profit margin
You must consider your profit margin before going ahead with a renovation, especially if you want to increase or decrease it. For example, a kitchen redo might increase your profit margin, but that doesn’t mean you should do it.
Increasing your profits by taking on more debt isn’t a good long-term strategy for financial growth and stability. Instead of focusing on what will lead to higher profits today.
So, a professional renovator will have a solid understanding of all three phases, but it's your job as a homeowner to understand when you need an estimate for one phase vs. another. A good rule of thumb is that if your goal is to change something about your home, you'll want a quote for it.
When deciding on whether or not to proceed with a renovation project, homeowners should be realistic about what they can afford and stick to their budget. It’s also important to get multiple estimates before signing any contracts and ask potential contractors what type of experience they have with similar projects.