The ideal budget for a home renovation project in New Zealand should not cost more than the property’s resale value, whether or not you plan to sell your house in the future.
If you live in North Island, the cost of expanding a room or something like a glass repair for Palmerston North homes would depend on certain factors.
Those who plan to sell their house after renovating it should base their budget on market values and the current condition of the property. Say you bought your house for $300,000 and homes within your neighbourhood are selling for at least $600,000. In this case, you may spend up to $200,000 for renovations to lock in a $100,000 profit.
The return on investment that you wish to achieve will be contingent on the amount that you are willing to spend on a home improvement project.
The bigger picture on home prices may serve as another indication. As of March, the median price of a two-bedroom house nationwide cost $378,250. A three-bedroom home cost $457,000 on average, while four- and five-bedroom houses cost $700,000 and $850,000 each, respectively.
If you are keen on a home renovation without planning to resell it, be realistic when it comes to the price. Bathrooms are among common areas for renovation, and it may cost between $7,000 and $10,000 on average to refurbish a five-square-metre bathroom.
A 10-square-metre bathroom would likely require you to spend at least $10,000 while upgrading a 15-square-metre one would cost at least $15,000. Those who plan to splurge with marble and high-end fittings would have to spend more than $25,000.
Even if homes are fetching for a high price due to market trends, it is still wise not to spend more than necessary on home upgrades. Remember that reselling your home could be a complicated process.