How much does it cost to renovate in Auckland?

Billions of dollars are spent renovations in Auckland every year, from humble suburban shacks in the outer suburbs to blue-ribbon mansions in Remuera & Herne Bay. So how much does it cost to renovate, what are the best returns and what other renovation advice or tips should I know before I start a renovation in Auckland? We have some advice below. If you have any renovation questions, please feel free to give us a call to have an obligation free chat on 0800 33 66 77

Where to look

Have you heard that real estate saying, location, location, location?

In the instance of Auckland renovations…… You can find a renovation project in almost any area. The key is to renovate and refresh the property so that it adds appeal for the type of buyer looking in that area.

For example, an inner-city apartment is unlikely to be bought by a family of five.

A single person, couple or a property investor are the more likely buyers. Therefore, the property needs to be renovated to attract their attention.

The same goes for an outer-Auckland suburbs family home. Don’t spend money on extra parking if the house is in a wide empty street with loads of free parking. A fourth bedroom or a second bathroom would be money much better spent.

Researching the area to find out who lives there and who’s buying, and then targeting the renovation to them, is the key tip to picking a successful property.

How much does it cost to Renovate?

This is the tricky bit. Not only do you need to buy within your price range but you also need to have the money to pay for the renovation.

All up, this renovating requires money – especially in the Auckland renovation market

You will need at least a 5 per cent deposit (although up to 20% per cent depending on your lender) plus the renovation funds and finally the interest repayments during the renovation.

Most of these costs such as interest rates can be calculated in advance. The big unknown is how much the renovation will cost.

Experience is the guide on building and renovation costs, along with a team of reliable electricians, plumbers & LBP builders.

Recent house renovations Dream Homes have undertaken have ranged from

Interior Renovation costs $41,000 to well over $100,000
Bathroom renovation cost starting at only $3500 for a basic upgrade with an average spend of $9000 – $16000 and well over $20000 for a full redesign
kitchen renovation cost  ranging from $10,000 to $20000  for average size, $20000 – $50000 mid size and $50000 to over $80,000+ for high end designer kitchens.
House Extension cost $35000 +
Cosmetic Upgrades cost $3000+

A very general price guide can be given if you give us a call and tell us your ideas. F

Best returns on your investment

Our renovation experts believe you should always try to keep within the existing footprint of the property

Not only does it mean less red tape with council planning permission and permits but it also means less expensive structural work. A renovation that will refresh your home will add significant value if you take it to the house auctions. Of course, you can have house extensions but they are usually motivated by a growing family and desire to stay in the same location where the sale price will justify the extra expense.

The biggest return is usually made from adding a bedroom, which automatically lifts the house into a more expensive price range.

A three-bedroom house is in a higher price range than a two-bedroom house. The same goes for bathrooms two is much better than one. Another saying is “Kitchens & bathrooms sells houses”.

A kitchen renovation & bathroom renovation are the 2 areas that will immediately add value to a home. A well organised, clean and modern kitchen & bathroom can significantly change the look and feel of an entire house. Any potential buyer will be influenced by these 2 areas most and the look, feel and finish of your kitchen design & bathroom design will influence your capital gain.

Another good strategy is to improve the outside of the property as soon as possible. This ensures that the house attracts attention at an early stage, which often means more potential buyers become aware of it.

For every dollar you spend on improving the property’s first appearance, you can add significant added value in a hot property market. You will have heard of many stories in the media about a person renovating and walking away with significant and almost unbelievable gains.

It is also important to make sure you are not designing for yourself. When Renovating for a resale is about minimum spend for maximum value. That means there will be decisions to make that are not based on your personal style or for you to live in the property.

Our renovating experts suggest cutting out the high-end appliances and finishes, unless that is the market you are renovating for. A good mid level quality F& P appliance is about the level you should be pitching at for maximum gain.

It is better to spend money on getting the basic accommodation right, such as bedrooms, space, lighting, rather than spending on things that your specific family or lifestyle would prefer.

But how do you know you will get your money back after the renovation?

Is it worth it?

This is where Auckland property market knowledge is critical. You should work out the figures on a worst-case scenario. We believe you should overestimate the home renovation cost and underestimates the sale price. This gives you a conservative profit analysis. If it doesn’t stack up on these conservative figures you are better off looking at an alternate home to renovate.

For example, potential capital gain is not included in the analysis. That’s a bonus but you should not rely on it given the potential volatility of the Auckland property market. However given the current market, we are aware of some astute renovators making a good living just working on renovations in Auckland. (Please check with a tax adviser or IRD with regards to renovating-for-profit.  They can offer good advice regarding tax, Tax free capital capital gain and renovate to profit)

Our recipe for the best renovation cosmetic changes include:

• Tie the look of the whole property together. Aim for a clean, co-ordinated and modern look throughout the property. See what display homes in the area are doing and follow their formula.

• Presentation is everything. Keep the place free of clutter and any personal items. Keep walkways clear.

• Higher-priced properties generally combine three colours or more on the exterior. Limiting your exterior paint scheme to only two colours also limits profit potential.

• Paint living and family rooms in a slightly lighter shade of the exterior colour to maintain consistency.

• Make sure the kitchen design & bathroom designs are well organised, open, and completed to a high finish. kitchens & bathrooms sell houses!

How to pick a renovation target

• Narrow your search to three suburbs (not necessarily near each other).

• Research who lives there, the local culture and overall demographics of the area so you know who your buyers will be. Remuera buyers expectations are going to be quite different to Pukekohe buyers.

• Analyse the property floorplan to assess if value can be added.

• Estimate the overall renovation costs.

• Estimate the sale price of the improved property. Work out any tax implication and factor this into the project costs

• If the potential return isn’t going to be worth it – find something else. Many properties will not be suitable.

Top money-making renovations

• Add an extra bedroom. Cost $15000+

• Improve first impression. Cost $3000+

• Add an extra bathroom/ensuite. Cost $9000+

• Renovate kitchen. Cost $9000+

• Renovate bathroom. Cost $6000+

•  Internal cosmetics. Cost $3000+

• Add parking (inner city).

• Create outdoor living area and/or a deck. Cost $3000+

How to pick a great Renovation, Extensions & Home Improvement team?

Throughout Auckland, the team at Dream-Home-Renovations in Auckland has developed a formidable reputation as a high quality home renovator and house extension company. With years in the home improvement, renovation and house extension industry, we have the experience and expertise to deliver your dream home upgrade or complete renovations, on time and on budget. With such a comprehensive renovation service and in house trades service, we are able assign our clients a designated home remodeling specialist/project manager to assist you with your room additions, kitchen renovation, bathroom renovations or home improvement project based on your specific needs. They will be your one point of contact and manage your entire renovation for you, so you dont have to worry about a thing!

There is a reason that we have been in operation for so long – we treat each of our customers and their property with respect