How To Save And Where To Spend During Your Home Renovation
Here in Brisbane, we’re obsessed with renovating our homes. There are so many great reasons to renovate your home: more space, better lifestyle, capitalise on the resale value or simply just update the décor. One thing we all agree on is the huge cost we pay to have our homes renovated.
Costs associated either before the build starts or during the build can take the smile right off your face; I’m talking about government charges, Goods and Services Tax, Home Warranty Insurance, Portable Long Service Levy and the list goes on. This is all before the soil gets turned over.
Some of the biggest price increases lately have been around the Public Indemnity Insurance space and this has affected the costs around Private Certification and Design. All of these costs can’t be avoided. However, there are ways to reduce the build cost if you are willing to compromise to meet these challenges.
How much does a full home renovation cost?
Average renovation costs per square metre range between $2,000 – $3,500 and that’s why many Brisbane renovations can start around $300,000 and easily exceed that figure for a complete transformation.
You might ask, “Where do most of these costs go?”
Well, labour these days isn’t cheap in Australia, nor are manufactured materials and let’s not forget about red tape and bureaucracy. These all add up at the end of the day.
Modern Day Challenges for Those Looking to Renovate
Most people renovate their homes either because they need more space for a young growing family or because they are preparing for a multigenerational home, phasing into retirement. Or they may just be looking to update their home for lifestyle choices. However, all of them are concerned about rising energy prices, stagnant wages and how they can future-proof their home during the renovation process by lowering energy costs and earning additional income from their backyard by leasing out rooms in their home to meet these modern-day challenges.
Factors that Affect the Price of Your Home Renovation
Using traditional construction methods and materials can result in an expensive build. By comparison, some alternative modern materials and their methods will deliver a reduction in building costs.
The size of the renovation is the largest contributor to the overall cost of most renovations. Once you start reducing the size of the project, you start to see a huge reduction in actual build costs.
Adding additional floor levels over the top of an existing single storey home or raising and building in under an existing home is another area where actual building costs blow out. However, by building or adding on to the same level, you will see a substantial cost reduction.
Where Should You Spend More Money to Maximise Your Renovation Value?
Now that we’ve identified the areas where we can reduce renovation costs, we can now think of the areas where we can spend more money and receive back the biggest value.
You can never have enough storage! Consider building in as much storage space as possible. Consider building space for school bags and sports gear in the laundry or built-in drawers for each child’s study area.
By choosing to purchase luxury appliances, you will reap the benefits years down the track; they not only save you money on energy costs they have also been built with precision engineering, meaning very little break downs.
Considering the technology needs of the family is important now and into the future. Research the latest wireless technologies and integrated sound and security systems and ensure the modem is in a central position in the home.
How Much Will Your Renovation REALLY Cost?
With renovation work in 2019 increasing by 4.2% and continuing until 2024 [Statista] it’s no surprise that building costs will keep rising especially with a low-interest-rate environment in Australia.
On a daily basis, we see customers underestimate their build cost budget by 80%.
It’s also a common myth that it is cheaper to knock the house down and rebuild a new home. Once all costs are factored in and build quality and service is assumed to be at the same level, building new will undoubtedly cost more.
Tip 1 – Don’t end up going headfirst into the design process with a Building Designer/Architect.
Tip 2 – Always have a Builder qualify your budget first before moving to the next step.
Tip 3 – Look for design and construct renovation builders who have an in-house design team built into their process.
Remember, better information leads to better decisions. Make sure you’re armed with the right information before you start your journey into renovating. Download our free guide about creating more space in your Brisbane family home; it may just be the space-creating solution that you’ve been looking for.