Adding up the costs of Home Renovations in NZ – The Figures You Need to Know

Most family homes will eventually arrive at a time when renovation becomes a serious consideration. Growing children need their space, or the time has taken its toll, and the bathroom is in desperate need of a makeover. The inevitable question arises: How much does it cost for home renovation, NZ?

The incredible number of variables which go into calculating the cost of renovations means that there is no definitive answer we can give here. Instead, you need to plan your reno, so you don’t come up short on funds. We’ve broken it down so you can get a reasonable idea on how much it will cost to upgrade your home and your life.

home renovation cost infographic

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 Many Reasons for Renovating

There are many reasons you could choose to pursue a home renovation in NZ, but they could include:

  • Create more living space
  • Add a second story
  • Change the aesthetics to suit your preferred style
  • Revamp the kitchen or improve the bathroom
  • Subdivide so you can all have your own space (such as aging parents or teenagers)
  • Increase street appeal and value

If you are renovating to increase your home’s street appeal so you can bump up the asking price, then you must focus on increasing the value of the property beyond what you are spending.

In New Zealand, the average cost of a renovation will range from $1,800 to $2,500 per square metre. Plan your renovation wisely, and you will receive more value than you put in.

Avoid overcapitalising as you could end up with more mortgage than what the property is worth. Always know what the ceiling prices are in your area for similar properties to what yours will be after the renovation.

A great example of overcapitalisation are swimming pools. Home renovations in NZ which include a swimming pool, will rarely add the cost of the pool to the value of the home.

We’re not saying you shouldn’t get a swimming pool, but if you do, it should be because you plan on staying in the property for some years yet.  

Research and Plan Your Renovation Project

Before you start calling in the home renovation, NZ professionals to deliver your quotes, you will need a detailed idea of what you want before you pick up the phone.

Let’s say you want to improve your bathroom but aren’t sure how to go about it. One way to find inspiration is to check out design magazines or search for home décor ideas online.

Pinterest is a fantastic resource with hundreds of ideas uploaded by Pinterest members every day. Many of the design ideas you will find online and through Pinterest are affordable solutions which are within reach of short-term loans.

How to Save Money on Home Renovations, NZ

Paying in cash can often give you access to hefty discounts from builders and tradespeople because they can avoid expensive merchant fees. A lot of tradespeople are happy to pass on the savings due to the convenience.

Tradespeople will also never pay retail price on the materials they use during the job. Many will be happy to pass their lower costs on to you via more affordable quotes.

After all, cheaper quotes are a great help when it comes to getting more work, but you shouldn’t choose on price alone. You will always want to ensure your home renovation, NZ experts have the necessary experience, qualifications, and licensing before you hire them.  

The Types of Renovations and Their Average Costs

As you can imagine, the type of renovation you require will dramatically affect the price you pay. If you are short on funds and are looking for short term cash loans to fund all or part of your project, then more expensive plans may be out of reach. However, a short term cash loan may be the top-up you need if you’re almost at the asking price.

Kitchen Renovations

A kitchen renovation can start at $5,000 and go up from there. If you aim to completely re-design the kitchen, then you will be looking at anything from $20,000 to $40,000.

Bathroom Renovations

A bathroom can be a little cheaper to renovate than a kitchen but expect a small bathroom renovation to fetch around $4,000 to $5,000. Going for top-shelf fixtures will raise the price significantly – $10,00 and up (even for small bathrooms).

House Extensions

It’s difficult to quantify a house extension given the number of variables and diversity in square footage. However, the average home extension in NZ costs $60,000. The price covers a vast range of work from adding an extra room, all the way up to a large second storey extension ($6,000 to $350,000).

Cost of Home Renovation, NZ Services

A break down of costs can provide a good indication of what you can afford:

Electrical work – $2,200 – $4,400

Plumbing – $2,700 – $4,200

Surveyor / Engineer – $1,500 – $4,000

Insulation $800 – $1,600

Architect – $2,000 – $6,000

Joinery (windows) – $,4000 – $7,000

Funding Your Renovation with Short Term Cash Loans

Many home renovators use the equity in their home to fund the renovation, but what happens if you come up a little short. A short term cash loan may be the perfect solution for topping up your renovation funds.

If you’re just a few dollars shy of creating your dream home, short term cash loans are available in small amounts up to $5,000.

They’re fast, and available even if your credit rating may not be the best. Plus, if your renovation needs are modest, such as a coat of paint, a simple kitchen upgrade, or tiling the bathroom, short term cash loans may be all you need to improve your home.

By |2019-10-15T21:23:26+00:00October 7th, 2019|Financial Literacy, Save money|0 Comments

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