Melbourne: is this realistic cost of extension and renovation?

I know this is a bit of a "piece of string" question, but we're considering getting a property and renovating it for a future PPOR. I've looked at some properties in the area we're interested in; seems development sites are only 150/200k cheaper than reno sites (I'm assuming because developers bid up the prices). So it seems renovation is more feasible for us than knockdown-rebuild.

Sites I've looked at, the house tends to be 150 sqm approx. I'd be looking to extend out to a total of about 200/220 sqm approx; this would include a fairly standard 3bed-2bath area for us (with largish living space), and a (2bed 1 bath, smallish living space) granny flat of sorts for my parents to live in when they visit.

After trawling through what feels like 100s of reno and pricing threads, am I being realistic in thinking this could be done for 250-300k? I'm assuming I would have to move the plumbing around, ie kitchen/baths would have to be in new positions.

Fwiw, the house would be in south-east suburbs on approx 550-700 sqm of land.

Also - first time renovators here, and on a PPOR too. Worth using a builder or trying to organize trades ourselves? My husband would maybe have the time to do this (he'd be on leave or retired by then) but I don't think he's super keen on the idea, unless the savings are significant (ie 50k-ish)

 

Feels a bit odd replying to my own post, but I spent last night thinking of cost breakdowns etc. Am I way off?

- Planning permits, DA etc as well as plans (by builder? drafter?) - 30k [too much or too litte? We might end up using a planner even though it's such a minor project, simply because they've got so much experience and could potentially push it through faster...]

- rejig internal walls and extend outward - 50k

- floors and paint - 30k [too litte? Paint plan on white Dulux stuff, floors I prefer a dark stain so oak would've been ideal but am thinking stained pine; could do lowest grade but since I hope to use the ppor a long time I should probably use mid-grade to reduce warping etc over time?]

- kitchen in granny flat - 10k [I know it's a bit much, plan on cheap Ikea-style stuff with stone benches]

- family bathroom - 20k

- main kitchen area - 30k [too little? thinking traditional-style parallel benches with small butlers' pantry where the dishwasher would be.]

- main bathroom - 30k [maybe a bit much, don't want anything overly fancy other than nice vanity area, could also do with cheap but nice-looking freestanding tub or maybe a small spa tub]

- laundry - [??? 5k?]
- granny flat bathroom - 10k [would be very basic and small, can probably do it for a bit less]


Also, I would ideally stagger the reno so that we can move in and potentially save some costs - would do the extension first, then family bath and granny flat kitchen, then walls and paint *then we move in!*, then the rest of it over time. Another factor is that we're planning to sell the current ppor which should hopefully generate some decent funds - this will happen after we move into the new place. So post move in, there's a lot less stress about finances - though of course we still want to stay within a realistic budget!

I haven't budgeted for landscaping and external render , since I'll do those things at the end - or maybe leave it for another year since we'll probably be tired of all the reno stuff by then! (though maybe it'll cost 50-70k?)

 

Would it be cheaper/easier to buy a house suitable for you and add a granny flat for visitors?

 

I’ve looked into it, but it doesn’t seem that way - a nice renovated house is 200k more and granny flat 100k or so. I figure even if it’s 50k more (total) to do extension and Reno, we’d end up with a higher quality product and one that’s more to my tastes/needs.

maybe we’ll push back the renovation to 2021 by when we’ll have more funds, so less financial stress :/ I can also use the extra time to be more uber picky about house location

 

Better to buy a house you can live in as is that can have the granny flat added at a later stage. The benefit is renovations take a lot of time (at the mercy of tradies etc) and costs can frequently blow out.

The price differential you mention above doesn’t seem to make reno-ing worthwhile IMHO.

PS- the prices you outline above seem OK if you are willing to project manage the whole process yourself (coordinate trades etc), if you want a builder to project manage then add at least 10% to all those figures.

Also, note the specific requirements for granny flats in Victoria.

 

Thanks @housechopper2 - the more I think about the more I reckon we’ll need a builder to project manage. My husband would have the time to coordinate trades but we don’t have Reno experience so probably better not to risk it. He plans to retire after this l, so maybe he could hang around a bit and after he his we could do a small ip Reno where we manage trades ourselves

I’ll look some more into already-renowd houses, but a lot of my preference has to do with build quality and personal tastes at this moment - I worry about the quality/insulation/ etc of those 100k Grammy flats and I fell like if I Reno a house for 300k I could potentially create a nicer ppor space and also create more equity.

I’m glad I’m not too far off in terms of cost. We are thinking of doing the permits process ourselves to save some money if needed. But overall we might also up the budget a tiny bit - though in my head the extra 100k is budgeted for “budget blowouts”.

 

It would be worthwhile asking a few builders for quotes to reno some of the properties you are looking at before buying, with your exact required layout and specifications. I think you might be surprised at the costs involved.

You should also try quantify what getting a house with your personal tastes (along with time commitment) is worth versus buying a house which might tick 80% of your boxes without any tradesmen or time needing to be committed.

 

That’s true, I think I’ll get in touch with some builders

I did take another look at properties I could move into and build a granny flat at the back, unfortunately costs are mich higher than I initially thought ie those houses are 2m-2.4

 

Double check that you will be allowed to build a granny flat if your parents only visit rather than live there. That doesn’t sound like they are actually dependent on you.

Victorian regulations are pretty strict in this area. For example, once the dependent person is no longer living there, you will have to remove the granny flat.

 

Thanks @Joynz I'm all good in that regard, but of course Vic rules (as you mentioned) are different and everyone needs to do their own due diligence, council checks etc.