As reported by Architecture & Design Australia, around 50% of all house renovations cost between $40,000 to $300,000 or more, depending on a variety of factors. Geographic location is one of the most impactful cost factors, and in NSW, the average renovation cost comes to $66,000.

If those numbers sound steep, don’t be disheartened. These are just averages, and depending on the scope of your project, you may pay significantly less. Speak to us so we can give you a realistic estimate for the result you desire.

The common rule of thumb you always hear is to spend no more than 5-10% of your property’s current value on home additions and renovations. This rule is just a guide and is more important for investors who want to resell and avoid overcapitalising on renovation work. If you’re renovating your primary residence, you can feel free to spend as much as you think is reasonable to get the desired result.

In general, a renovation is almost always going to be cheaper than building a new house since you are working with a foundation that already exists. However, in some cases building a small new house may be cheaper than renovating a significantly large property. It all depends on the relative cost of materials and labour.

Home renovations, when well-designed and executed, can significantly increase the value of your property, making it more attractive to potential buyers. Cost-efficient home renovations are one of the ways that property investors turn a profit. However, if you’re not worried about selling and want to build a dream home perfectly suited to your lifestyle and preferences, then how worthwhile a renovation will be will come down to your subjective feelings.