How much should be spent on a renovation?

The average renovation in Queensland costs $60,560 but that certainly does not mean there’s a one-size-fits-all approach when setting your renovation budget.

Using Pinterest for inspiration, strolling kitchen and bathroom showrooms for ideas and mapping out plans are the fun and games of it all. However, before getting too carried away with whether it’ll be tiles or timber, know your budget. The REIQ recommends spending 10 per cent of the property’s value for cosmetic refurbishments, or 40 per cent of the value if you are looking to make a structural restoration. You should also remember, if you are selling in the short term it’s rare to recuperate the full cost of most renovations.

What areas of my property should I renovate?

Deciding what areas to renovate can be tricky, especially when there are conflicting opinions as to which areas are a ‘must’ to renovate. Most often, kitchen renovations are the most likely to increase your property’s value – it’s the central heart-of-the-home area that brings people together. However, if your bathroom/s also need repair, splashing all your cash on the kitchen may not be advantageous as it first appears. A more prudent course may be to split the investment between both the kitchen and the bathroom.

Beyond these more major repairs, fresh paint and new floorings can make all the difference without costing an arm and a leg. If selling, failure to attend to these areas can leave a sour first impression on potential buyers. Just don’t spend too much!

If you are renovating to sell, leave your personal taste out of the mix. Stick to a neutral colour scheme that will appeal to most buyers.

How to save money while renovating 

Although renovating can be expensive, there are multiple ways to save money. However, keep in mind that cutting costs should not equal cutting corners. Don’t be afraid to roll up your sleeves to do, or at least assist with some of the work. If a paint job is on the cards, have a read of our article on how to execute a DIY paint job here. Don’t be afraid to ask for a discount or the best price. Due to the competitiveness of the market, businesses will often discount their prices to get the work.

Dwyer, A. (2020). ‘How Much Should I Spend On A Renovation?’, reiq.com.au, December 4. Available at: https://www.reiq.com/articles/real-estate-agent-and-buyers-agent/?fbclid=IwAR1oyPmx7rJiTJvgb4Vj60bDuopwKnmOSHFaVgYRpAviweE4_96q-FAvqW4