Renovations and extensions: the real cost

Most people think about doing renovations and extensions without considering whether the money is worth spending on the project in the long term. Architect Nilesh Minot discusses the cost vs. the benefits.

Driven by the short term benefits of improving the appearance of a property for sale, with every renovation and extension there’s a huge risk of overcapitalisation. To avoid this, you should design a home for long term comfort for either yourself, or the next buyer.

The first rule is to work out a budget, then prioritise your needs and desires and get a realistic assessment of costs.

Try to work out whether spending the money will be worth it at the end of the day, either in monetary terms or in those intangible aspects of comfort and quality of life.

It may be that you are better off selling your house and buying another rather than going through the hassle of altering your existing residence. Or, you may also be surprised to discover that the cost of a substantial renovation and extension often exceeds the cost of demolishing the existing house and re-building!

Assuming you have decided to spend the money and know how much is available to you, seek the advice of an architect on what you may be able to achieve for the price.

You may not be able to afford exactly what you envisaged so be prepared for alternatives. Get your architect to take you through them. There is always more than one alternative and they all will have their advantages and disadvantages.

You may be surprised by an alternative which achieves all your goals in an unexpected solution. A solution that not only saves you money but also adds more to the value of the property than the cost of construction.

There are so many things to consider when completing renovations and extensions. This includes structure, climate, orientation, views, materials, site conditions, finishes, furniture layouts, lighting, colour schemes, associated garden design, and services available, practicality of design and aesthetics.

All of these have a bearing on costs and architects have the necessary training to take this into account and put the ideas on paper. Architects do this sort of work every day and are able to deliver options quickly and objectively – this might save you days of agonising and indecision.

If the renovation and extension look like part of the original house, or is strong enough to improve the existing character, then it is deemed a success. There is nothing worse than a renovation and extension that detracts from the appearance of the original house. It may be a liability, which actually reduces the value of the house. This problem is particularly prevalent in cheap additions to period houses. An architect will have the training and know-how to design an addition, which is sympathetic to the existing dwelling.

Don’t forget that architects do much more than design. Consider the value of having someone who not only has designed and drawn your project, but can have it approved through council and deal with all the parties involved including structural engineers, surveyors and builders.

Having an expert on site representing you at such times is important to ensure that the project gets completed to your satisfaction and to your budget.

Author Nilesh Munot heads Shobha Designs – Architecture and Urban Design, a registered business on ServiceSeeking.com.au