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No Better Time to Renovate: Costs Up Just
1%
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Renovations,
extensions and new home costs have increased only 1% in
the last quarter according to Archicentre, Australia's largest initiator of
home renovations in its latest Summer Cost
Guide.
Archicentre
expects renovation costs to increase moderately in
2010 with baby boomers renovating their family home
for lifestyle reasons and to
increase the value of their homes as part of their
superannuation strategy.
Rising
house prices, interest rates and the cost of moving,
estimated to be around $50,000 to $60,000 for the
average move when property taxes and expenses are added,
is likely to provide more incentive for people to
renovate their current home.
For
new houses and major renovations, the cost structure is
approximately 46% on materials, labour 33%, and 21% on
fees, levies, permits, taxes, and GST. The cost will
vary for country areas adding 5% to 15% to the
renovation.
Archicentre,
through its Architects Advice and Architects Design
Reports, has often found that people have started
renovations and then realised they needed to review
their plans when they discovered, for structural or
aesthetic reasons, the plan was not delivering the
desired outcome requiring a costly redesign. For
example, the significant costs of replacing and
upgrading kitchens and wet areas means that a master
plan can ensure such renovations are optimised for value
in relation to future potential additions to the home.
With
increasing interest rates and many people building and
renovating for a financial return the original design
process and material selection, which provides the vital
information for costing and managing the budget, is the
foundation for a successful and financially rewarding
renovation.
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