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Is renovating a house actually worth it?

If you’ve been saving to buy a home that needs some TLC, a reno could be a great way to improve its living space and help increase the property’s resale value. But renos can be disruptive and cost a fair chunk upfront. Here, we look at some estimates of house renovation costs and ways to lower your reno budget.

How much does a full house renovation cost?

It depends on how big the home is and how many tradies you need, but many Aussies have spent more than $300,000 over 12 months to do a whole house renovation.

If it’s just part of a home you’re wanting to spruce up, like a bathroom, it might be around $2,000 to $4,000 in renovation costs per square metre. How much you spend is completely up to you, but some suggest not going overboard if you want to make your money back when selling.

4 renos that give you the best bang for your buck

If you’re wanting to add value to a home, the kitchen, bathroom and backyard could be great places to start.

  1. Kitchen renovations
    Kitchen renovation costs can start from $10,000 and could increase a home’s value by $50,000 to $60,000. Amazing! But it all depends on the size of the kitchen, the size of the job and what finishes you use… marble benchtops anyone?

  2. Bathroom renovations
    Redoing a bathroom is a great way to catch the attention of potential buyers. An average cost of a bathroom renovation is around $19,500 but when finished, it could add $100,000 in value. And if there’s more than one bathroom to do up, the more the potential gains.

  3. Backyard renovations
    Who doesn’t love a backyard BBQ? If there’s enough space, installing bifold doors, a deck and adding a roof is a good way to connect the indoor and outdoor areas. An average renovation cost per m2 is $1,200, so if there’s 15m2 to play with that’s $18,000.

  4. Open plan living
    If a home is looking a bit boxy, it might be worth knocking out a few walls to make the space look and feel bigger. Chat to a trusted builder for a cost guide because every home’s structure is different.

    Pro tip: If you’re eligible, applying for a
    Government grant could help lighten your load and loosen up your budget.

Sticking to your budget

Renovating houses in Australia can be expensive and a few hundred dollars here or there starts to add up. Labour might be one of the biggest costs with any reno job, so if you can safely do some of it yourself, you’ll nail your budget.


Pro tip: Did you know you can open multiple
USave savings accounts to help save up for all your various reno needs?


At the end of the day, it’s super important to enjoy the space you live in. So, if you’ve got enough saved to redo the home of your dreams, go for it. And now that you know a bit more about the average cost to renovate a house, it’s time to get planning. Bring out the mood board!

 

Before making a decision to acquire USave, you should obtain and consider the Terms and Conditions available at ubank.com.au. USave is issued by UBank, a division of National Australia Bank Limited ABN 12 004 044 937 AFSL 230686.

If you want to find out more about the costs of renovating, use a renovation costs calculator or add your renovation costs to an Excel spreadsheet to keep track of your expenses.


The information contained in this article is of a general nature only. It doesn’t take account of any person’s objectives, financial situation or needs. Before acting on this information, you should consider whether it is appropriate for your circumstances and seek independent legal, financial, and taxation advice.