Can you afford home renovation?
In Australia, the average homeowner spends $600 a year on home renovations.
The cost of repairs and insurance covers most of that, with the cost of utilities and utilities-related expenses also covered.
In fact, if you’re not paying for the whole house, you’re still saving money in the long run, says Chris Beattie, a property analyst at property investment bank TSB.
This can be especially important when you’re on the fence about a home renovation.
“There’s a lot of pent-up demand for home improvements, but it’s a bit of a mixed bag when you compare to what you might see on the TV or in a book,” he says.
“You’re often seeing a lot more investment into the house rather than a lot less.”
There are two major factors at play here: firstly, if a home is worth $500,000 or more, it will probably need to be renovated, says Beattier.
And secondly, you might want to make sure you’re paying for all the things you want to put in the home.
If you’re in a state where there’s a higher percentage of renters than homeowners, you could be getting away with spending less on your home.
“If you want a property that’s worth a lot, you’ll probably be able to get away with a little less on the home,” says Beettier.
You could even pay for a house with a lower value if you have an asset such as a house or car that’s a lower priority for you.
The difference between what you’ll spend and what you save depends on the size of your household.
“It’s not just the amount you pay, it’s how you spend it,” says Mr Beatties.
For example, if your household has two or more adults who are both in school, you may be able buy a house for $400,000 without having to worry about having to pay any more than that if you do need to spend more on your house.
“And that’s because the house is going to be in great condition, which will give you the extra savings that you’re looking for,” he adds.
If your household is made up of just one person, such as if you are the sole breadwinner in your household, you will need to pay more for the home than if you live with your partner or partner’s partner.
“That’s because you’re going to need to put money into the home to pay for the other people,” says Chris.
“But it’s not a big enough difference to see where you could go from there.”
The bottom line, says Mr Meyers, is to look at your finances before making a decision about whether or not to renovate your home or to buy a new one.
“We all make the same decision,” he explains.
How to get a home improvement quote in Australia Your options for home improvement include a range of different options depending on where you live. “
For the rest of the year, you have to do a bit more research to make your decisions.”
How to get a home improvement quote in Australia Your options for home improvement include a range of different options depending on where you live.
Here are the top five ways to choose the right home renovation: Get a home inspector for your home This is an important step, says Ms Gavins.
“Before you get a quote, you need to get an inspection, and that will cost you a little bit more money, but you’ll save a lot if you get it right,” she says.
A home inspector will make sure the home you’re considering is up to scratch and meets the requirements of the current local regulations.
In some cases, the inspection will also be a one-on-one consultation, which is free.
“Once you get an inspector, you can get a quotation from the local authority for a specific home improvement work, and you’ll be given a list of what you need, what materials you need and what services you need,” she explains.
Check the building permits before you buy your home In most cases, there is no obligation for buyers to obtain building permits, says Sarah O’Connor from the Australian Institute of Housing.
If they do, the cost to them will be about half the cost paid by builders.
“As long as you have the correct information, you should be able get a reasonable price for the work you’re doing,” she adds.
Ms O’Conner says that if the building permit you’re applying for isn’t listed, you shouldn’t expect to be getting a high price for your work.
“What is the building code?” she asks.
“How are the neighbours and neighbours groups responding to the work that you’ve done?”
She says if you don’t know the codes of the local councils, you won’t be able know how much your home needs to be rebuilt.
“Most builders have an understanding of what their building codes are