Every Reno is different and particularly with an older property you can have lots of hidden costs. Costs are a bit like a piece of string. Do you need to take out walls replace flooring, plumbing, electrics, hws, heating, windows………………. Even when buying a new property you need to allow for things to go wrong so never spend all your budget

Thanks Kate, that's what I'm having trouble grappling as we have no building or renovating experience. What's a 'safe' budget to expect for a renovation $150k,$250k,more? Not sure where to start in making a decision!

There are big differences in costs depending on where you live? Are you in a big city, sydney or melbourne or a regional area? And which state? I know for a fact your suggested costs wouldnt even come close to a full scale renovation in sydney. Also depends on whether you would be extending out or up (most expensive option) or just living with the existing footprint of the house and making cosmetic changes? That could include ripping out kitchens and bathrooms but not moving them to the opposite side of the house where no services currently exist. So i think you would need to evaluate each house you look at individually as they will all cost different amounts. Another thing to consider is, can you add a lot of value by renovating? Buying an already renovated house means there is no further value gain to be realised and you may be paying top $ because people are generally willing to pay more if the work is all done.

Thanks afjp. Northern suburbs of Melbourne (outer metro), likely keeping footprint the house and focusing on cosmetic changes, retaining existing services eg plumbing and kitchen but upgrading

If you can find a renovated house that you like and wouldn’t want to change much (except perhaps wall colour and floor coverings), you will save yourself a lot of time and energy. But buying something unrenovated might be a way to purchase in the area you want, as long as you are happy to live in the house in its unrenovated state for a while as you undertake work gradually.

We bought an unrenovated 1960s house in Hobart 18 months ago, and builder has just come back with budget of $160K for kitchen, 2 bathrooms and laundry (keeping plumbing in same place, but it includes moving a wall). We’ve also spent about $50K on new double-glazed windows, and probably another $50K on new heat pump and window coverings, fixing minor roof leaks, electrical work, fencing. Further costs will be new floor coverings and painting throughout. Then there’s the garden!

Tradies are hard to come by at the moment (at least in Hobart) so none of this has happened quickly or easily. Lots of calling around to get quotes, then waiting for months for work to be undertaken because they’re all booked up. We started discussions with our builder in February 2021 and don’t yet have a date when the kitchen / bathrooms / laundry will be done – hopefully 2022!

Thanks Kate for sharing your experience, it really helps!

the usual rule applies about buying for location but after numerous renovations and new builds we know that renovating can be a nightmare with unlimited surprise expenses (like hidden asbestos, electrical and plumbing problems before you consider styles of new fittings) so, if budget and time are limited, don't buy anything that needs more than modest cosmetic upgrades (that doesn't include bathrooms that work all needs to be done by professionals while kitchens can sometimes be upgraded with DIY flaktpac cabinets to save costs) but imo the best locations are usually in the older suburbs and for our last big reno we spent about $500K renovating a mid century house that was already in good condition (it's in a great location but we're still not finished) in retrospect it could have been more cost effective to KDR but we love renovating and DIY and don't have jobs and dependent kids to distract us from the endless work

If you can find a renovated property that fits your needs and budget then go for that option. Renovating is a lot harder and more expensive than you will ever dream of.

Undertaking a major renovation is not for the faint hearted. One other expense to consider is if you need to move out of the home whilst the work is being done. We had a small 70’s brick and tile, pulled the roof off, put on a second storey and doubled the size of the house. We owner built and in the end it turned out great. We lived in the house the whole time whilst working full time and having two kids at school. It was the wettest, wildest winter in 7 years and we lived with a tarp on the roof for three weeks. Had to poke screwdrivers through the plaster ceiling to drain the water out at times so yes, consider your options carefully!

bargainhunter ...your story reminded me of our first reno where we just ran the hot water in the bath to overflow and escape through the holes in the floor while we sat in the hot water trying to keep warm with snow coming through the holes in the roof...wouldn't do it again but some of our best memories of working together and going without normal comforts and a true test of any family relationships

The next issue is time. Do you have the time even to manage a Reno. There are lots of thing to do even if you have a builder and architect to help

Thank you everyone for your stories and experiences, I'm finding these helpful! The more I think about it, I think for our first foray we'd probably be aiming for a cosmetic reno of bathroom and kitchen rather than anything to ambitious.

It maybe better to buy a already renovated property if your looking at it from a financial standpoint. Renovating can take time, can cause stress and you never know exactly how much work may be needed until you start ripping things up. Doing cosmetic makeover to get your feet wet maybe best for now to see how you go with minor upsets to your routine. It takes time in general for a renovation and with how things are now, delays are likely to occur.

How old a property are you looking at Sara?

Note what oklouise said about surprise expenses. Cosmetic reno of a bathroom can lead to discovery of water damage can lead to more extensive repair work can require asbestos remediation. Kitchens and bathrooms were rooms in which asbestos was commonly used.

If I were you, I’d consider housing in the primary market, it's incomparable comfort, and as a rule in such houses you don’t meet troublesome neighbors. As for the renovations and finishes themselves, I'm probably not the best advisor. I'm a nurse, and when I needed repairs, I went to a financial counselor because I'm raising a child on my own, I'm divorced, and I don't have any financial support either. On top of that, I was able to get a loan and that's how I did minimal cosmetic repairs. The full cost came out well under $200,000, but it's better than if I'd given up on repairs at all.

Old post!