11/8/2022 8:10:00 PM by MILEHAM
What can you achieve with a renovation budget of $250,000, $500,000 and $1 Million? The opportunity cost of Quantity vs Quality.
When embarking on a home renovation, the two main factors you need to weigh up are:
· The scale of your project (how many rooms or areas you want to refresh or renovate) against,
· The quality of fixtures, materials, and finishes you’d like to use.
Ultimately, if you’re on a set budget, you need to carefully consider your quantity vs quality priorities and likely be ready to make compromises along the way.
A question of Quantity – how much can you do?
The below renovation budget brackets outline how much your budget can generally stretch at each level. These budget brackets factor in mid-range quality fixtures, materials, and finishes for renovation projects based in Australian capital cities.
$250,000 budget
With a budget of $250,000 you will generally be able to do a refresh within the existing structure of your home or project, and potentially include a few minor structural changes.
$500,000 budget
If you’re looking to increase the footprint of your home by adding an extra space on the ground floor (for example, a new open plan kitchen/dining extension on a Californian bungalow), or building up to add more rooms, your starting budget should sit around $500,000. This also assumes your existing structure is in good condition, and that you have a fairly level, easy access block. If you want to do a major extension or full second story, you will need to prioritise which areas or features of your existing home you want to upgrade, as you won’t be able to achieve a full refresh and major extension in this budget bracket.
In a regional area on a flat block, you could generally expect to be able to undertake a knockdown rebuild or build a brand-new basic home or holiday house with this budget. You could expect a timeframe of up to 12 months for a rebuild or new build in a regional area.
$1 Million budget
Assuming you live on a mostly flat and easily accessible block, with a budget of $1 million you can start considering major additions or extensions along with a full refresh of your existing home. If you have a sloping block or difficult access for construction, the size of your project may need to be scaled back to allow for additional building costs.
$1.5 Million budget
For anyone in the Sydney metro area looking to do a full knockdown rebuild, a $1.5 million starting budget should be expected, where your architect will guide you on the best combination of design and quality of finishes to meet your project objectives.
The below infographic outlines what you can expect to achieve at different budget points:
The Quality Equation - how premium do you want to go?
Before undertaking any renovation project, it’s worth considering the quality of the fittings, finishes and materials you’d like to use. Consider a long-haul flight - whether you sit in economy, business, or first class, all passengers get to the same destination at the same time, however, it’s the ambience, comfort level, and service along the way that differs the experience. A good architect will be able to provide advice on how you can spend more on some areas, and less on others, to still create a sense of luxury and style. Here’s a quick rundown of the levels of quality you should consider:
Whichever path you decide to take on a renovation project, you will always need to balance quantity and quality for various decisions along the way. It’s helpful to discuss these options with your architect and builder before commencing to ensure you have accurate allowances in your construction quote to avoid budget blowouts, and so you can achieve your desired vision.
To discuss in more detail what your renovation budget could achieve within your design vision, book a complimentary consultation with MILEHAM today:
https://www.mileham.com.au/enquire