Plenty of folks in New Zealand love to renovate their homes. Some do it to increase their property’s market value while others simply want to have a better, comfier, and more functional home. This 2020, the country has seen a massive increase in home renovation projects. The upward trend is believed to be caused by several factors. The first one is the low-interest rates on financing options. Then, there’s also the lack of things to do because of the pandemic.
Home renovations also rose to popularity because many people want to bump up their property’s value while the market remains stagnated. Also, a lot of homeowners look into renovating their property so they can accommodate their growing family and save money on relocating. Lastly, there are a lot of citizens who recently moved back to the country. Most of them had their fixer-uppers remodelled to become their home.
If you’re also keen on doing your remodelling work for your property, there are some key things you need to look into. For starters, you should know the general renovations costs in New Zealand. This would allow you to set your expectations and plan for the project. To understand the finances involved in renovating a residential property, check out the guide below.
Factors that affect home renovation costs in NZ
It’s quite impossible to provide a ballpark figure for the cost of renovating a property in New Zealand. According to Westpac, Kiwis spend around NZD 2,000 plus or minus 10 percent per square metre. The prices can significantly vary because of certain factors. Knowing and understanding them will help you come up with a more accurate cost estimate for your upcoming home remodelling project.
The scale of the project and materials you prefer to use
The first vital factors that you need to look at when estimating your renovation budget is the extent of the project and the materials you want for your home. Both will largely contribute to the final remodelling bill.
When you plan your budget, check critical things such as the parts of the house do you need to work on. How many rooms do you plan on remodelling? Also, identify what sort of materials you are keen on using. Are you leaning towards a basic update or something more luxurious and high-end?
If your working budget is a bit limited, see to it that you prioritise your home updates according to their importance. Also, look for more affordable alternatives for the materials.
Here are some of the most common renovations jobs done here in NZ and their approximate costs for super simple to premium finishes:
- Kitchen renovations – Costs can vary greatly, depending on what you need to do and the size of the kitchen. Westpac shares that essential updates for small kitchen start at around NZD 5500. If you’re budgeting for a larger space and want to use premium materials, you may need to shell out up to NZD 40,000.
- Creating an ensuite – Having an ensuite bathroom not only adds more value to your home but also ensure your comfort. If you’d like to upgrade your bedroom, be ready to spend anywhere from NZD 15,000 to $50,000, according to Houzz,
- Adding outdoor features like deck/lounge – Having an outdoor addition such as a deck or an outdoor lounge would come extra handy, especially when you get bored inside the house. If you want to include this to your update, a simple installation of a pergola, deck or an outdoor lounge you may need to prepare around $10,000 to $20,000.
- Bathroom remodelling – MoneyHub points out, that there is a massive market for bathroom remodelling projects in Auckland. On average, this project can set you back by around $1500 to more than $20,000, depending on the size, plumbing repair/replacement requirements, and materials to use.
- House extension – Need to build an additional room? Homes to Love,explains that building a same-level house extension in New Zealand can cost anywhere around $50,000 to $200,000.
- Internal restructuring – Want to tear down a wall, change the layout of a room or increase room size? You’ll need an internal restructuring of your home. The cost would vary depending on what you need to do to alter your existing interiors.
- Landscaping – Landscaping certainly adds a whole new layer of aesthetic value to your property. If you’re looking to hire landscaping services for a 100 square metre lawn, you should prepare around NZD 3000 to $5000.
Age of the house
Another crucial factor that can make or break your budget for remodelling your house is its age. Surely, old houses have a unique charm and appeal. However, sometimes they do come with potential problems that may require you to spend a bit more money.
Surprise home damages can add up to your original project budget. That’s why it’s essential to do a thorough check of the property before you start working on a project. Add-on services can cost around $100 to thousands of dollars depending on the severity of the problem,
Here are some of the common issues that you deal with when working on a fixer-upper:
- Clogged or damaged Watercare assets
- Damaged roof or structure
- Water damaged sub-flooring or walls
- Rodent infestation
- Faulty/Archaic wiring systems
- Asbestos contamination
- Termite-infested structure
It’s incredibly important to identify all the potential problems that may arise if you remodel your home. This way, you get to determine how much money you need and how long you need to stretch your project timeline.
Professionals needed for the job
While it can be extremely tempting to opt for a DIY approach, hiring a professional is still the best choice. It will help you save money, avoid follow-up repairs, and ensure timely project completion. Typically, your chosen renovating company in New Zealand would provide you with a team of professionals.
The members of the team would depend on what sort of tasks are included in your project. Below is a list of professionals you might need for a renovation job.
- Renovation architects
- Drain layers
Often, homeowners forget to consider their site location when estimating the cost of their renovation project. It’s essential to determine what sort of building work is permitted in your area. This will be a very crucial factor, especially when you need to build an extension of your property.
Your location can also influence the cost of the materials. For example, if your house is located somewhere remote, transporting the item can come with an additional cost. The available options for builders, engineers, architects and other professionals could also vary depending on the area or if your will hire one from another town.
Paperwork and other things needed
Besides the factors above, you also need to look into the costs of applying for building consent. According to the Ministry of Business Innovation and Employment, the following projects require a building consent:
- Building or altering the structure of a building
- Demolition jobs
- Plumbing or sewerage work with an addition of sanitary fixture
- Installing AC or wood burner
- Relocation of a building structure
- Building retaining walls that measures more than 1.5 metres high in urban locations or 3.0 metres in rural
- Installing fences or perimeter walls more than 2.5 metres high
- Building swimming pools plus perimeter fences
- Installing bridges, decks or platforms measuring more than 1.5 metres above ground level
- Sheds or cabins more than 10 sq. metres big
The fees you need to settle for your building consent application depends on the scale and cost of the project and your council. If you’re from Auckland, here are some key things to know when computing for the building consent costs:
- For building consent pre-application of standard, complex or fire engineering brief projects, you need to pay NZD 311.
- Building consent application differs depending on the cost of the project:
- For projects amounting to no more than $4999, total building consent costs is NZD 1130.
- For projects that cost around NZD 5000 to $19,9999, you need to pay $1880 for building consent application.
- If your project is valued at NZD 20,000 to $99,9999, building consent is equal to $2850.
- For home renovation projects that cost $100,000 to $499,999, the building consent application fee amounts to NZD 4730.
If you’re from other areas, be sure to check the cost calculator provided by your council. They will help you figure out how much you need to pay for the pre-application, deposit and final processing.
Timeframe for the budget
Your project’s timeframe can significantly affect your expenses. The longer you take to complete it, the higher costs you will incur. For each day you extend the project, your labour costs increase. If you’re renting equipment such as excavators, cement mixers, and, concrete saw, you also have to pay additional fees for rental extension.
Your project expenses could also increase if you need it done faster than the usual rate. Contractors have to employ more people to get things done quickly, so naturally, you have to pay more.
Is it worth the money to renovate a residential property in New Zealand?
Your home renovation spending can range anywhere from $10,000 to more than $100,000 depending on the scale of your project and material preferences. It’s definitely a bold move which would require you to plan your steps wisely.
When you finalise your renovation budget, be sure to consider your goals for the project. Are you renovating to create a dream home for your family? Are you doing the remodelling job so you can drive the market value up?
If your goal is to create a long-term place, investing a lot on your project will be worth it. See to it that you prioritise the improvements you need to make so you can maximise your budget. You can also divide the entire project so you can allocate enough money to finish each phase.
If you’re aiming to bump up it’s selling price, be sure to focus on add-ons or improvements that your target buyers will find useful. This way, you can genuinely pique their interest.
Start planning your home remodelling project in Auckland, NZ today!
Ready to start your renovation project? There’s plenty of time left before 2020 ends. If you start planning today, you might complete everything before the end of the year. Contact a reliable and experienced renovation expert in New Zealand to help you today!