What to consider when renovating
Deciding how, why and when to renovate can be a daunting decision. While it’s incredibly exciting to dream up all the design possibilities for a home, it’s even more important to plan a renovation that’s actually realistic for your sanity (and savings account!). From sound financial planning to finding the right Master Builder, here are my top points to consider when planning your next project.
Start with financial planning
I often see people embarking on a renovation that’s too big for their planned budget. This can be a costly mistake. Consider the worst-case scenario: you may uncover unexpected issues in your home that require costly repairs, or you may end up with a mortgage that is so out of control it impacts your health, lifestyle, relationships, and finances, or the bank won’t lend you enough to finish. To prevent overcapitalising, it’s important to have a clear idea of your overall budget before starting any renovation project. Here are some financial planning tips I use to help establish a budget:
Decide if you plan to stay in the home for a long time, or if it’s a ‘for now’ home.
Check your home’s valuation, or get a real estate agent to give you an accurate estimate of what they could sell it for.
Look at the values of homes in your neighbourhood to establish the minimum and maximum values buyers are prepared to pay.
Check what you paid for the house compared to what it is currently worth and work out any difference – this is equity that the bank may allow you to use to make improvements.
Ask the bank what additional lending they can offer you based on your current mortgage, income, expenditure and valuation (you’ll have to submit documentation for assessment so allow plenty of time for this process).
Also be careful of undercapitalising – if you live in an affluent area and install a budget- friendly kitchen, it could be off-putting to potential buyers.
Depending on the answers to the above, only now should you begin to formulate a budget. Once you’ve got a rough number, carve off at least 30% (if not 50%) for a contingency and never plan to spend the maximum amount available to you.
Find the right builder
A renovation is a big investment so it’s important to work with a builder who is backed by a trusted brand, like Master Builders. Speak with several builders to find one you feel comfortable with and can trust, and look for builders who have experience in renovations similar to yours. Master Builders represent the best of the industry; you can discuss any potential issues and challenges that might arise, they can help you assess your home, understand timeframes, manage variations that might occur due to unforeseen issues, advise you on your floor plan, tell you what will require consent, advise how to add value and price up different options. This is why finding an experienced builder early is crucial, because all these factors can affect how your plans are drawn up and what they will cost – and that can make or break a project from the beginning. I believe the best renovation outcomes are from a collaboration, when the homeowner, builder and architect or draftsperson are working together from the start (and the interior designer of course!) to achieve the right outcome for you.
It is important to protect yourself and your renovation. Only a Master Builder can offer you a Master Build 10-year Guarantee, which needs to be applied for and accepted. This is a type of warranty product that includes protection in case your builder’s business is no longer operational or is unable or unwilling to finish the job or address defects. It provides the best peace of mind that exists in the market.
Consider needs, not just wants
Of course, you might have a phone feed and Pinterest board (top tip: check out the Master Builders’ Pinterest board and the House of the Year website) filled with inspiration images for your dream home – and so you should! But as well as what aesthetics you want the home to look like, it should also cater to the functional needs of those that who live there. While open plan is great, a busy family may need space to be together and space to be apart. Write a list that includes who lives there, how they use the spaces and what for, and what you’d all like to do more of at home. Record what you love about the home and what the problem areas or frustration points are. Consider your family needs in future not just now (little kids grow quickly). Challenge what you think you need to be happy – sometimes a huge project means your lifestyle is significantly changed going forward. Your needs may also include a specific timeframe – moving out and paying rent for a lengthy period of time may not be possible, so factor this into your wish list.
Assess your floorplan
A floorplan is a view from above, showing the layout of a home and the relationship of rooms and spaces to one another. Think about if there are enough rooms for your needs, and if the rooms cater to your habits. Where do people walk and what guides them in that direction? Do the spaces allow people to move and navigate easily throughout your home? There’s no point spending up on your dream kitchen if your home has a fraught floorplan creating bad flow and cramped, dark rooms – you may need to invest in removing walls. Also identify the sources of natural light on your floorplan. Look at where windows and doors are, where the light falls and how it changes throughout the day. In some rooms the sunlight may be filtered and dreamy, while in others it could be hot and glary. Improving natural light can be one of the most powerful ways to transform the way a home looks, feels and how spacious it seems.
Decide if you need structural changes
After assessing your floorplan you need to decide if the renovations you want require structural changes, and if so be prepared to pay for plans, council consent and the trade works required including structural engineers. Small building works and working within the current footprint may not require council consent or moving out. Also consider if there any site-specific challenges to keep in mind, as these might influence your ability to make structural changes.
Structural changes
Alter the floorplan
Extend the home’s footprint
Add new windows or doors
Add skylights
Take out or put in walls
Non-structural changes
Wall coverings, i.e. paint and wallpaper
Window treatments i.e. curtains and blinds
Lighting
Furniture
Soft furnishing
Fittings and fixtures
Flooring
Renovate to add value
Choose renovations that add the most value to your home like kitchens, bathrooms, and outdoor living (for every dollar you spend renovating, ideally you want to double it in return).
Check out the style, age, and condition of key rooms like kitchens and bathrooms and invest in renovating these. These are crucial to improving the value of your home and they’re also high on the list for personal enjoyment! Notice if the kitchens and bathrooms link in a cohesive style or if they are a total mismatch.
Update the floorplan while staying within the same footprint.
Update the foundations like flooring and paint so you have a quality blank canvas.
Add statement lighting as it can be cost effective but creates a large feature.·Improve the street appeal - sand, fill and paint the exterior, clear the gutters, spray any moss and mould and tidy up your garden beds.
Consider how you can repurpose spaces, like adding a small ensuite and walk-in across the back wall of a large bedroom or create multi-purpose spaces like an office/exercise room.
Look for the potential to add natural light without doing a big renovation, like adding sliding doors or a skylight.
Create good street appeal by improving the façade, front section, fencing and landscaping.
Create outdoor rooms with decking, paving and plants to extend the floorplan.
ballpark common renovation costs:
Bathroom
Budget up to $25k
Mid-range $25-$45k
Luxe $45k upwards
Kitchen
Budget up to $25k
Mid-level range $30k-$60k
Luxe $60k upwards
Adding a level $300k +
Exterior painting $15k +
New roof $20k+
Adding a room to the external structure $60k+
A new window $10k
Sliding doors $20k
Adding a skylight $8k+
Removing or adding a wall $10k+