|
Media Release |
|
No Better Time to Renovate: Costs Up Just 1%
Thursday, 07 January 2010 00:00
Archicentre's Victorian State Manager David Hallett said Archicentre expected renovations to increase in 2010 considerably with baby boomers renovating their family home for lifestyle reasons and to increase the value of their homes as part of their superannuation strategy.
|
|
Mr
Hallett
said rising house prices, interest rates and the cost of moving,
estimated
to be around $50,000 to $60,000 for the average move when
property taxes
and expenses are added, is likely to provide more incentive for
people
to renovate their current home. Mr Hallett said we are also seeing an increasing trend to alternative construction systems such as lightweight materials and low embodied energy which can eliminate some trades and offset cost increases in other areas. |
With the average move costing $50,000 to $60,000 in property
taxes,
expenses and charges, a new bathroom renovation can be
undertaken in
the current home for $9,588 - $24,990 plus a new kitchen for
$10,608
- $31,722.
"Balanced
against this is that we are now seeing a shortage of suitably
skilled
tradespeople in some areas of the building industry, resulting
in some
price increases in labour due to the substantial increase in
construction
activity from the Government's stimulus package in schools,
health and
first home buyers areas.
"Whilst renovation costs at this stage are remaining reasonably
static
the major challenges for renovators and owner builders is to
ensure that
they get the design of the renovation correct to ensure it
delivers a
sustainable lifestyle on budget.
"For new houses and major renovations, the cost structure is approximately 46% on materials, labour 33%, and 21% on fees, levies, permits, taxes, and GST. The cost will vary for country areas adding 5% to 15% to the renovation."
Mr Hallett said that Archicentre, through its Architects Advice and Architects Design Reports, has often found that people have started renovations and then realised they needed to review their plans when they discovered, for structural or aesthetic reasons, the plan was not delivering the desired outcome requiring a costly redesign. . For example, the significant costs of replacing and upgrading kitchens and wet areas means that a master plan can ensure such renovations are optimised for value in relation to future potential additions to the home.
"With increasing interest rates and many people building and renovating for a financial return the original design process and material selection, which provides the vital information for costing and managing the budget, is the foundation for a successful and financially rewarding renovation."
Without a well planned design and management approach to a renovation people may find the returns they were hoping for are severely eroded by unplanned costly variations during the construction stage, Mr Hallett said.
Renovation
Costs from the Summer Cost Guide
Bathroom (ensuite is less) $9,588 - $24,990
Kitchen $10,608 - $31,722
Laundry $4,182 - $9,894
Bedroom $4,080 - $8,466
Single Room 20m2 $4,794 - $10,302
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.
Download the Archicentre Summer Cost Guide at http://www.archicentre.com.au/pdf/09summercostguide.pdf
Media Enquiries:
David
Hallett
Victorian State Manager Archicentre (03) 9819 4577 Mobile: 0439 439
115
Ron Smith Corporate Media Communications Archicentre (03) 9818
5700 Mobile:
0417 329 201