The hidden costs of renovations

Please note that price information in this article was based on data from 2010, and may now be outdated. 

You’ve finally decided to take the plunge and rectify your home’s obvious shortcomings with extensive renovations. It should be an exciting time, right? Maybe not.

Buyer beware

While riding the renovations high, it’s very easy to make a series of poor, hasty decisions. Eager to get the work underway you may find yourself committing to the first quote received and signing your life away before you’ve even found out what’s included.

Added extras

Many potential renovators fall into the trap of getting a quote for the structural part of the job only and fail to recognise that around 50% of the cost is found after lock up in fittings and finishings. Important jobs such as gas fitting and piping, plumbing and electrical services are often not included in the initial quote. Owning a brand new bathroom with all the mod cons isn’t much good if there’s no running water. While an enthusiastic hubby may be keen to try out his handyman skills, most renovations should be left to the experts.

It’s a blowout

Faced with a host of unexpected renovations costs, it’s no surprise that after learning the hard way renovators are seeking more bang for their buck. Before shelling out the extra cash for renovations, it’s important to request a breakdown of the services being offered, including the price of labour per hour and whether or not the quote includes materials.You should know what you’re getting in return, especially when prices can vary so much. Our data shows the cost of a plumber can range anywhere between $25 and $178 per hour, while electricians charge from $30 to $140 per hour, so this discrepancy can make a big difference to your finances.

Background check

Although often tempting, the importance of proper credentials must not be overlooked in favour of cheap prices, particularly if your renovations involve dangerous tasks such as gas fitting and piping. It’s absolutely crucial to check your tradesman is appropriately licensed and insured, or your negligence could potentially cost you thousands.

Even after the final tile has been laid and wall rendered, there’s usually little relief for your hip pocket. Rubbish removal is typically the last – and often overlooked – step of the renovations process…and don’t forget about the ongoing costs of maintenance and repairs!

However, provided you’re prepared for all the financial traps that go hand-in-hand with renovations, your experience can still be a positive one. Even if there are a few challenges along the way, at the end of it all you’ll be rewarded with a refreshed and revitalised abode you love coming home to.