Have you found your dream home but you’re not happy with the kitchen? Is your current house in need of some sprucing up? Renovations and additions can liven up a house and transform it into the home that reflects your style and taste.
But before you start planning your renovation, it’s important to understand what your home’s worth and whether the investment to renovate will make you money down the track. This will help avoid overcapitalising if the planned renovation is too much compared with the average size and value of homes in your area. To avoid overcapitalising, experts believe you should spend no more than 30% of the value of your home on renovations.
For example, a kitchen renovation may cost from $5,000 to $50,000 (or more) depending on the appliances and finishes you choose. According to an article by leading bank NAB, 5% of the value of your home should be in your kitchen. So if your home is worth $500,000, you could spend no more than $25,000 on your kitchen.
If you’re unsure of the value of your home, make sure to get your home valued and check out renovated houses nearby to your home to see what they’re selling at. A good place to start your research is this real estate website.
Budgeting for a renovation
When it comes to renovating budgeting, you have to not only consider the material costs and labour, but also things like architect fees and change of insurance costs. Saying that, budgeting for your renovation doesn’t have to be hard.
Once you’ve made the decision to renovate, you can begin budgeting with an online renovation calculator.
How do renovation calculators work?
A renovation calculator will give you a rough idea of how much a renovation will cost. Designed to give you a quick but comprehensive overall price, according to the specific project requirements.
How are the calculators useful?
A renovation calculator is a useful tool in the very early stages of planning by preparing you before you handed a full-blown builders quote.
Will the calculation be accurate?
While renovation calculators are comprehensive, you’ll still need the help of professionals to get a more accurate estimation of your renovation before deciding whether to renovate or not.
Alongside your renovation calculator, you should talk to:
Building inspectors: A building inspector can reveal whether any significant structural work is required that you’re missing. If required, they will need to be factored into your calculator.
Architects: Request drawings of your renovation plans from more than one architect. Make sure to ask about fees and the cost structure, as this will also affect what you enter into your renovation calculator.
Builders: Also take your drawings to a few builders to get the best possible price. Compare them carefully and see who can offer the best price.
Local council: Talk to the council in your local area to find out whether there are any fees involved if you choose to renovate that you’re unaware of.
Insurance companies: Whether you’re with an insurance company yet or not, take the time to talk to a couple of insurance companies to see what the price difference is insuring your current house and your renovated house.
What are the different kinds of calculators?
There are different types of online calculators available for homeowners looking to renovate their house.
To find out the approximate cost of your planned renovation, visit:
For information on the projected value of your house and up to date return rates on your house, visit:
There’s so much to consider when deciding to renovate your home – from how much you can afford to spend, to how much you should spend, and where. It’s important to take the time to weigh up whether the cost will, in exchange, bring an added resale value, an improved standard of living, and save you money by renovating instead of relocating.
Knowing the kind of expenses involved in a home renovation is essential for drafting a realistic budget. Renovation cost calculators are designed to give you a proactive start to allow you to get a project cost estimate online to gauge whether it’s something you can realistically pursue further.