Average costs of doing a renovation?

Im just after some rough costs to do a renovation to a 60m2 apartment.
(2Br 1Bath)

It needs:
- New paint. walls+ ceiling
- Flooring (laminate)
- New kitchen
- New bathroom (retile to ceiling, new vanity + shower screen)
- BIRs to rooms.

Its an old apartment so some walls are cracked which need repairing.

How viable is it to do a renovation if you may only extract a 1:1 ratio in equity? Rent will probably increase by about $50-$70 a week from $350 in current state to $400-$420 a week renovated.

 

$4000 kitchen
$4000 bathroom
$2000 paint
$1500 flooring
$2000 for the other work
Say $1500 for contingency

Say $15000 all up

 

That's DIY price Im assuming? (no labour)

 

unfortunately youll need a bit more info to get the estimate tightened.

eg -

kitchen - replacing all cupboards and apploiances? will everything stay in current position or will there be plumbing costs to move say where the sink currently is etc? standard of appliances?

bathroom - again, will everything be staying in current position? rough tile budget per sqm?

robes - not that big a deal, unless youre going fully fitted out the range isnt huge

flooring - laminate ranges in price massively. are floors level or will that need work too? btw consider using vinyl plans if the budget allows, imo much better option for a rental than laminate.

demo/strip out - how much? eg is there a substantial kitchen already or a tiny one? what about bath etc?

will you be co-ordinating the individual trades yourself or paying a builder their margin to do it?


the answers above could easily make a $10-20k difference

 

kitchen - Everything in current position. No plumbing costs. Replacing all cupboards, benches,etc. $600 Bunnings Oven and cooktop electric.

bathroom - everything be staying in current position? Add vanity and shower screen. Tiles to ceiling and floor.

robes - easy

flooring -doing 13mm laminate . Considered vinyl but it looks cheap for some reason.

demo/strip out - remove all carpets , small kitchen.

Walls have cracks which need to be repaired.

15K just seemed extremely cheap to me. I had imagined this would of cost about 30-40K.

 

based on what youre saying and assuming you arent doing the work yourself a rough estimate of 30k-40k would be in the ballpark imo.

btw good quality vinyl planks look a hell of a lot better than laminate and are significantly tougher than laminate too. i used to be very sceptical about it until i saw the results in the flesh. havent used it myself though.

 

are vinyl planks cheaper than laminate?
I had guessed 30-40K.

Now the question is whether its worth it to spend the money, or will a valuation show no increase. Obviously I'd attract better quality tenants and have $50/week increase in rent.

If my maths is correct @ 30K and $50 / week increase, thats a 8.6% return. If I get a $1:$1 value in valuation in return, this can't be too bad.

Alternatively, would it be better off going cheap, but then have issues or replacing the floors/kitchen etc when it falls apart while the tenant is there?

 

Unless there is over supply of rentals in your area, I would just do the cracks and a lick of paint. You are about to outlay circa 40,000 for a probable increase in rent of 3,000 per year. Unless you can get a 2:1 or greater return in equity on a reval, I personally wouldn't bother until it gets even more tired or there is a need to differentiate yours with a renovation to attract tenants.

How is the rental market where your unit is situated?

Agree with sanj, vinyl floor planks are great. Soft, warm and cushioned underfoot and good for sound proofing the floor especially if there is units underneath yours.

 

Rental market is pretty good, little vacancy but the unrenovated apartments hang around for a bit longer.

 

Most of mine have been in lower cost areas, so usually budget about $11k
~ $5K for supply / install of new kitchen
~ $500 per room for carpet install
~ $4K paint job internally

 

Hi Menty,
depends on where you want to reno, are you in the country or city.

 

City. Sydney metro

 

You would need to speak to a broker and get a valuation to work out if it's worth it.
Might be a waste to go to too much effort if it's already gone up from the boom.

 

Bought for $390K. At best a valuation would yield $410-420K (at a guess).
Total yield of the property (without counting Stamp duty) approx 5% (not the best I know)

 

I'm with @Player on this, you might only just need to paint. Do you have pictures of the current flooring?

 

How long ago did you buy it?
Depending on the location, you might be pleasantly surprised if you get a valuation.

 

Settled last week. Probably won't be getting a valuation until at least 6months or a year in . 2 year IO loan fixed

 

Ah right. When you mentioned "an old apartment" I thought you had it for a while.

 

Break it down into materials and labour.

A goody handy man can probably install to kitchen.

Bathrooms depending on how expensive you tile is your looking at 50 to $60 per sq metre for tiling. For a basic bathroom you should be able to get it done for $4k. Don't go to the bathroom renovators.

 

About $100