What to consider before renovating

By Fornaro | 04 November 2022

Renovating your property is a great way to potentially drive up its value. If it’s an investment property, you may also secure a better rental return.

Before you dive in, it’s important to weigh up the costs versus the benefit of renovating.

Here are a few pointers to help you decide whether renovating is the right choice for you.

Work out your goals

Before renovating, think about your long-term goals.

• If it’s your home, do you want to stay within this home for a while yet or are you likely to want a change of scenery in the next few years?
• How does the prospect of selling and moving on compare to renovating your existing home? Consider all the buy/sell costs.
• Are you in the headspace to tackle a renovation? Will you be required to move out, and if so what’s your plan during this period? Have you considered the commencement timeframe based on the current building and construction market conditions?
• If it’s an investment property, is the financial outlay of a renovation likely to pay off?

Create a budget

How much is it going to cost to turn your existing home into your dream home? Plan your renovations and put together an estimate for each component, and remember to include all the extra fees and costs associated.

To help give you an idea, here’s how much you can expect to pay to renovate areas of your property that commonly add value for resale.

Kitchen

If your kitchen benchtop is an antiquated electric blue and your appliances sound like they are going to take off when you turn them on, it might be worth looking into a kitchen upgrade.

It’ll cost you, but it may be worth it if your kitchen is the heart of your home or your goal is to sell your property in time as kitchens add significant WOW factor for buyers.

According to those in the know at Hipages, expect to pay the following for your kitchen reno:

• $10,000 to $22,000 for a small or budget kitchen
• $22,000 to $35,000 for a mid-range kitchen
• $35,000+ for a high-end kitchen plus appliances and anything extra, ie: feature lighting, LEDs, high end appliances, integrated fridge/freezers, custom joinery internal fitouts etc…the list of options and extras is endless…

Bathroom

An insta worthy bathroom could be a real drawcard for future buyers or renters.

Depending on factors like the size of your bathroom and the materials you choose, you may be looking to spend anywhere from $10,000 to $50,000+ for a bathroom renovation.

The Housing Industry Association found the average bathroom renovation cost $17,000 in Australia.

Repainting

A new coat of paint can do wonders for adding instant new life into your property.

The cost depends on the size of the property, whether you are doing the painting yourself or getting someone else in and which areas you paint (inside and outside). 

According to Hipages, the average cost to paint the interior of a property (single undercoat and two finishing coats) is about $20 to $30 per square metre.

As a starting point, for a two-bedroom unit, that might work out to $2,500 to $5,000.

For an exterior paint job on a two-storey property, you may be looking at $10,000 to $30,000+. For a roof refresh, expect to pay anywhere from $3,000+ depending on the size, condition and height/access etc.

How will you finance your renovations?

There are all sorts of different ways to finance your renovations. That’s where Fornaro are here to assist you.

You could top up your current home loan or refinance to fund your reno project.

Or you could use your own funds within an offset account or making the most of a redraw facility could be another option.

In some instances, a construction loan or personal loan may work best.

Depending on the funds required and individual lender policy, you may require quotes to substantiate any finance application.

Speak to us and we will run you through how each of these finance options works, and which may be right for you, based on your individual financial situation and goals. Get in touch today!