The true cost of the average home renovation revealed
New Suncorp Bank lending data released today reveals homeowners looking to renovate are loaning on average $63,188 to improve their home.
The average renovation cost*, varied per state with households in Victoria topping the list, investing $71,067 per average home renovation, followed by New South Wales at $66,609 and then Queensland at $60,560.
Suncorp Executive General Manager Consumer Lending Bruce Rush said, while some households are making small, cost efficient changes around the home given they are spending more time in them, postponed holidays or events are seeing some households start planning renovations to make their house more home.
“Many customers are keen to improve the look and feel of their home but don’t know where to start,” said Mr Rush.
“The best way to keep a renovation on track and on budget is to do as much research as you can before getting started. Talking to your bank or broker is a good place to start to ensure you get the right finance for your renovation project.”
A renovation calculator by Suncorp reveals how far a $60,000 renovation will get you if you plan to renovate.
The average kitchen renovation costs $20,750
An average bathroom renovation will set you back $16,250
A double carport renovation costs on average $32,450
“The cost to renovate can vary slightly depending on the location you live in and subsequent cost of trades, as well as the quality of fixtures or materials used,” said Mr Rush.
“Suncorp’s recently launched renovation calculator can help people understand the costs of different types of renovations whether it’s adding a kitchen, carport, garage or repainting the entire interior of your home.”
Where renovations are booming
Analysis of the bank’s data revealed the suburbs most frequently renovated in New South Wales and Queensland.
New South Wales
1 The Gap
2. Burleigh Waters
Mitch Picklington from Mitcon Build in Brisbane said that his business had received an increased number of construction enquiries as a result of COVID-19.
“We have been inundated with requests to quote for different jobs around Brisbane at the moment, whether it’s renovating one room in the house or making plans for a larger scale renovation to utilise the government’s Home Builder scheme.”
We’ve seen a surge in people wanting to expand their current living areas with an extension and refresh their outdoor entertainment area by adding a pergola, deck or even swimming pool.”
Ruined travel plans lead to renovations
Angie Brown from Randwick, New South Wales said COVID-19 had changed her 2020 plans, influencing her financial goals as a result.
“My role working in the retail industry was impacted early on however although restrictions eased in New South Wales and I was able to return to work, our plans to travel interstate and overseas to visit friends and relatives in the later part of 2020 were no longer on the cards,” Angie said.
“We had always planned to renovate, but COVID-19 and spending more time in our apartment than ever before made us reassess our finances, hastening up our renovation plans.”
“It’s been nice to stay busy planning our apartment renovation, talking to our bank and having discussions with local suppliers and builders, and it has given us something to look forward to in a pretty crazy year where things haven’t exactly gone to plan.”
*Data retrieved from July 2019 to June 2020
Average renovation cost by state
Australian average: $63,118