Budget bathroom Renovations Sydney

There’s a lot to consider when deciding whether or not to renovate your first home; from how much you can afford to spend, to how much you should spend – and where.

How much should I spend?

As a first homeowner you should avoid taking risks when renovating and spend conservatively. To make sure you don’t overcapitalise (when you spend more on a house than what you can sell it for) it’s a good idea not to spend more than 5% of the purchase price on renovations.

So based on the current median national house price of $437, 500 (source: ABS), your renovation budget shouldn’t be much more than $20, 000.

A well-planned and executed renovation can add up to 10% to the value of your home, especially if you hold onto the property for five or more years.
So by spending $20, 000 renovating your average $437, 500 home you could potentially make over $40, 000 – double the money you invested.

Should I renovate?

Just because you can afford to renovate, doesn’t make it the right decision. You should consider all the pros and cons before committing your time and money:

Pros

• Added resale value.
• Make your home more comfortable and improve your standard of living.
• Invest in quality fixtures and fittings that will stand the test of time.
• Save time and money by renovating instead of re-locating. You can avoid all the stamp duty, agency and legal fees that come with moving by re-modelling your home to suit your changing needs.

Cons

• Potential to overspend and overcapitalise.
• May have to move out of home while works are being completed (or live in dust!).

What should I renovate?

For the best return on your renovation spend, you should be selective in your renovation choices. Some common value-adding renovation projects include highly-trafficked rooms like:

Kitchen

Average size: 8 square metres
Average renovation cost: $12, 000-$16, 000

Do

• Install a canopy rangehood and dishwasher.
• Use stone for surfaces.
• Keep the design open-plan.

Don’t

• Purchase expensive fixtures and fittings.
• Compromise bench and storage space.
• Use an unusual colour palette.