Renovate for Profit and Pleasure
With the average move costing $50,000 to $60,000 in property taxes, expenses and charges, a new bathroom renovation can be undertaken in the current home from $10,000 – $25,000 and/ or a new kitchen for between $10,000 – $30,000+ depending on your requirements.
According to Archicentre, the building advisory service of the Australian Institute of Architects, renovations, extensions and new home costs increased by only 1% in the last quarter of 2009.
If you factor in rising house prices, interest rates and the cost of moving (estimated to be around $50,000 to $60,000 for the average move when property taxes and expenses are added), renovations and upgrades to your current home seem to be a much more attractive option!
Archicentre expects the number of renovations to continue to increase considerably in the latter half of 2010 with baby boomers renovating their family home for lifestyle reasons and to increase the value of their homes as part of their superannuation strategy. Also given the cost of a move, many homeowners with young families are planning for future needs as their children grow and family dynamics change. Renovations are a real consideration with requirements for more study space and different floor plan configurations to allow family members more effective use of existing space.
David Hallett, one of the State Managers for Archicentre, said “When people prepare a budget to buy and move to a new home, it becomes easier to see the benefit of investing in their existing homes for a return rather than hand over large amounts to government coffers for property taxes and charges.
Archicentre is the Building Advisory Service of the Australian Institute of Architects and offers architectural services to home buyers, new home builders and renovators. Archicentre engages more than 900 architects nationally and has offices in Melbourne, Sydney, Brisbane, Adelaide, Perth and Hobart and branches in many regional centres. The organisation distributes free technical advice to thousands of home buyers across the country through its range of property inspections, the architects’ advice line and homebuyer seminars run in most states.
“Whilst renovation costs at this stage are remaining reasonably static, the major challenges for renovators and owner builders is to ensure that they get the design of the renovation correct to ensure it delivers a sustainable lifestyle on budget.”
With interest rates on the increase and many people building and renovating for a financial return, it is essential to be thorough with your original design process and material selection. This initial process provides the vital information for costing and managing the budget and is the foundation for a successful and financially rewarding renovation.
Tips for increasing the value from your renovation project:
- Your design concept must be FIRST CLASS.
- Working drawings must be detailed and accurate.
- Don’t use expensive fittings and fixtures.
- Make sure your builder/ subcontractors don’t substitute.
- Your construction system must be economical.
- Room sizes must be efficient.
- “Architect designed” can add 10% to the value of the project.
- Always obtain a minimum of three quotations for all work.
- Focus on adding value – not costs.
Starting with a thorough master plan where both your immediate and future needs are considered means that your planned renovation need not take place all at once. The significant costs of replacing and upgrading kitchens and wet areas means that a master plan can ensure such renovations are optimised for value in relation to future potential additions to the home.
For example, your outdoor living area can be built now with future consideration for an outdoor kitchen to be added at a later date and the pool further down the track.
With a well planned design and management approach to a renovation, many people are pleasantly surprised by the returns delivered from both a lifestyle and a financial perspective.
Call 133 144 If you are considering a renovation or upgrade to your home, call the office to see how we can help