If Real Estate Is Auckland ‘First Love’, Then Renovating Has To Be A Close Second.
Billions of dollars are spent on 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.
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 20 percent deposit (although up to 40% 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.
Check with your bank about the best type of loans.
Experience is the guide on building and renovation costs, along with a team of reliable electricians, plumbers & LBP builders.
Recent house renovations Auckland Builders & Renovations Ltd have undertaken have ranged from – $15,000 – $650,000
How Much Does A Renovation Cost?
Interior Renovation costs $41,000 to well over $1500,000
Bathroom renovation cost start at approximately $15000 – $20000 and well over $30000 for a full tile bathroom.
Kitchens renovation cost ranging from $20000 for small size, $20000 – $50000 mid size and $50000 to over $80,000+ for high end designer kitchens.
House Extension cost $65000 +
Cosmetic Upgrades cost $3000+
What is the renovation costs per square meter NZ?
If you want a very vague idea of cost to renovate per square meter, try these figures as a guide, however please note that the figures can vary considerably. As a starting point;
$2200 m2 is very cheap renovation cost.
$2900 m2 is the average spend.
$4000 m2 and over is a high quality renovation.
Is It Worth Renovating?
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 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!
If you have plans or are thinking of renovation, why not get in touch with us. Auckland Builders & Renovations Limited. 0800336677