18 January 2008

Renovation Cost Guide Targets Outrageous Quotes

Outrageous quotes on renovations that can vary by up to 70%, have been targeted by Archicentre, the building advisory service of the Royal Australian Institute of Architects.

Releasing the 2008 Archicentre Cost Guide, Robert Caulfield, Managing Director of Archicentre said, "If home buyers and renovators have no knowledge of the reasonable costs of building or products they could be giving a builder or product supplier a blank cheque."

Demolition of part of a property for a new addition

The 2008 Archicentre Cost Guide shows that renovation building costs have continued to rise slightly, however, the increase in interest rates and a potential slowing in the housing market could see builders becoming more competitive in pricing as they look for work. A survey of Archicentre's renovation reports show the three main trends in renovations include: flexible indoor / outdoor open entertainment areas; home offices and home theatres. There has also been a dramatic increase in the number of renovators interested in energy efficient and water saving designs. Mr Caulfield said, "People who organise their renovations carefully can add considerable value to their home and make a good capital gain when they sell; however, others who undertake a renovation without proper costing can actually lose money. "Through competitive tendering we are seeing some building quotes varying by up to sixty to seventy per cent. The Archicentre Cost Guide can protect renovators from excessive building quotes which could save them tens of thousands of dollars on renovation work".

Mr Caulfield also said that people who purchase properties for renovation without an inspection run the risk of having to pay for unbudgeted repairs costing tens of thousands of dollars. The home buyer, having extended themselves to purchase the property, usually adds these unbudgeted costs to the mortgage.

Archicentre's national pre-purchase home inspection statistics show one in three homes purchased have faults which include wiring, roofing, foundations, cracking and plumbing problems.

Archicentre 2008 Cost Guide - Typical range of prices

Costs of Renovations ($)
Bathroom (ensuite is less) $9,200 - $24,000
Kitchen $10,200 - $30,500
Laundry $4,000 - $9,500
Bedroom $3,900 - $8,100
Single Room 20m2 upgrade $4,600 - $9,900
Single room 20m2 Extension $16,900 - $36,7000

NOTES: Prices include plastering, painting, wiring, plumbing, relocation or replacement of windows, the renewal of fittings and fixtures, cabinetry additions and surfacing eg. tiling. The estimates exclude stormwater drainage, paving, carpets, drapes, appliances or the construction of internal partitions to modify the layout of rooms. The upgrading standard is to medium-quality brick veneer or timber.

The 2008 Archicentre Cost Guide is available for download at http://www.archicentre.com.au

Click here for the full 2008 Archicentre Cost Guide.

www.archicentre.com.au
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