February 2024
The home renovation craze continues with budding renovators looking to cash in on hungry homebuyers and tenants, in a market driven by high demand. Naturally, smart upgrades can help attract a larger pool of people and yield higher profits, however, it’s important to remain objective and stick to a clear plan to reap big benefits.
Tom Robinson, Director for UrbanOz.com, a South Australian-based, bespoke construction, renovations, and property maintenance firm, says that most of the company’s home renovation enquiries are for bathroom and kitchen renovation projects – with a notable amount of these projects requested by interstate property investors.
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“Whether you are renovating to live in a home, or renovating to flip, a well-appointed, modern bathroom is a major asset in the home,” comments Tom. “However, when setting a budget, keep in mind that the cost of supplies has increased rapidly over the past few years due to supply chain pressure.”
The next big-ticket item for renovators is the kitchen. “As the saying goes, the kitchen is the heart of the home and it’s one of the prime areas for home improvement. Contrary to popular belief, a full kitchen fit-out can often cost as much as it would to just replace key items such as cabinetry and countertops.”
For those working to set a budget, Tom adds that one of the key areas where homeowners often come undone is when they are too focused on a luxury brand name- particularly when it comes to renovating an investment property. “So often, homeowners get caught up with the big brand names. Remember that in some cases, a well-known brand may perform as well as another more cost-effective brand on the market. Chat to your building team who can guide you in line with your budget expectations.”
He adds that one should remain objective throughout the process. “Think like an investor, regardless of whether you are renovating to keep living in the home. Opt for upgrades that won’t date or could be easily updated at a low price in the future.”
Tom’s practical tip here is to “keep feature tiles to one section of the kitchen or bathroom.” This way you only need to retile one area – as opposed to the whole room – should the colour or style date.
Six tips for renovating that will make your budget go further
For those investing to flip a property, Tom adds that while it’s important to invest in quality finishes, he cautions against over-investing. He shares six top tips as follows:
1) A bit of paint goes a long way: “Depending on the age of the property, a fresh coat of paint can do wonders. Remember to keep it neutral to appeal to a wider pool of prospective buyers or tenants.”
2) Bathroom bits: “Modern tapware and fittings can help give the bathroom a lift. We are also seeing a move towards simplicity and less clutter. Built-in-shower alcoves are getting bigger to house products rather than hanging product caddies in the shower. We have also seen an increase in one-colour bathrooms which speaks to the trend of simplicity.”
3) Flooring updates: “Updating the floors in your home can make a lasting impact. For instance, vinyl flooring is a low-maintenance option that’s easy to fit out and will instantly modernise the space.
4) Gutter and facias update: “Gutter and facia maintenance and replacements are underrated and can make a noticeable difference, giving the home a tidy curb-side appeal.”
5) Make an entrance: “The entranceway generally sets the tone for a home. It’s an easy way to make a good first impression. New door handles, an updated door or a new paint job can make a big difference.”
6) Kitchen bits: “We are seeing a return of colour to the kitchen, whether it is on the island bench or some of the accent cabinetry. The once all-white kitchen is having a facelift. Good hardware, such as rose gold, gold, or black handles is popular. In fact, we have seen quite a bit of bling making its way into the kitchen.”
Hidden costs to be aware of
“It generally comes down to the unexpected finds, timelines, and budgets,” comments Tom. “Be sure to set aside around 5 to 10% contingency for things that a builder cannot foresee until the project commences.” This could include asbestos removal, termite damage, plumbing issues and electrical works.
Termites and damage caused by termites need to be repaired or replaced. “Depending on the severity of the damages, your builders may need to engage with engineers which can add up in costs.”
While reputable builders will work to a tight timeframe and communicate throughout, there are certain things that are out of their control. “This could include weather and delay with materials supply,” he concludes.