What can you get with a home renovation budget of $500,000, $800,000 and $1.2m in 2025?
When embarking on a home renovation in Sydney, the two main decisions you need to weigh up are:
The scale (Quantity) of your project (i.e. how many rooms or areas you want to renovate) vs.,
The Quality of fixtures, fittings, materials and finishes want to use.
Ultimately, if you’re on a set budget, you’ll need to weigh up your Quantity vs Quality opportunity cost, and most likely be ready to make compromises along the way.
The following factors can also impact what you can achieve with your budget:
If your block is sloping or has difficult access
The condition of your existing home (i.e. whether any structural integrity or repair work is required before you can get to the “fun” stuff)
Any heritage restrictions or guidelines that need to be adhered to
A question of Quantity - how much can you do?
The Australian Bureau of Statistics has confirmed that construction costs have risen by over 30% since December 2019, however that we are now entering into a more stable period especially where materials prices are concerned.
To support your planning, MILEHAM has updated our annual Renovation Budget Guide for 2025, outlining how much your budget can generally stretch at the most commonly used home renovation budget brackets. While each project is unique, this Sydney Renovation Guide will give you a fantastic starting point as you begin your planning for your home renovation project. The below budget points factor in mid-range quality fixtures, fittings, materials, and finishes based on recent and current MILEHAM construction projects in Sydney’s North Shore, Northern Beaches and Eastern Suburbs.
Budget: sub-$500,000
With a budget of sub-$500,000 in Sydney, you will generally be able to do a full cosmetic refresh on the existing structure of your home. In the majority of cases, given you aren’t changing the footprint of your current space, you won’t require planning approvals, meaning a much quicker turnaround, and you may also be able to stay living in your home during the renovation.
When you have an older house with “good bones” and a practical layout, it’s amazing how much impact a refresh can have. For example, if you have a 4 bedroom home on Sydney’s Northern Beaches, with this budget you could install a brand-new kitchen, two new bathrooms, update your flooring, install new fixtures, fittings and appliances, and apply a fresh coat of paint. All of this will breathe a new lease of life into a tired home, and also add substantial value if you’re renovating to sell.
Budget: $500,000 - $750,000
Once your budget starts to move above $500,000 you can start to look at a more comprehensive update for your home (similar, but more detailed than the above), with the added inclusion of some internal structural changes or a minor and relatively simple extension.
It is at this budget point where you need to start considering involving the professionals for your project as planning approvals will likely be required and you want to ensure your designs are optimised for your vision and budget.
Budget: $750,000 - $1.2 million
If you’re looking to increase the footprint of your home by adding extra living space to your ground floor (for example, a new open plan living / kitchen / dining extension on a Californian bungalow), or going up to move some bedrooms upstairs, your budget should start around $750,000 - $800,000. This assumes your existing structure is in good condition and that you have a fairly level, easy access block.
If you want to do a major extension or a full second story with a master suite and 2 additional bedrooms and a family bathroom upstairs, you will need to start at around $1 million.
At this point you will also most likely need to move out of your home while construction is taking place, as the property will not be weather tight and utilities and facilities (e.g. water and bathrooms) will often be unavailable.
Budget: $1.2 million+
Assuming you live on a mostly flat and easily accessible block, with a budget of $1.2 million you can consider major additions or extensions along with a full cosmetic refresh of your existing home.
Generally speaking, due to structural reinforcements needed, a second story addition will cost about 30% more than an extension, however can add between 30-60% to the overall value of your home. If you have a sloping block or difficult access for construction, the size of your project may need to be scaled back to allow for additional building costs.
Budget: $1.8 million+
For anyone in Sydney’s North Shore or Northern Beaches looking to do a full knockdown with architecturally designed custom rebuild, a $1.8 million starting budget for a small house (4 bedrooms, 2 bathrooms) should be expected, where your Architect will guide you on the best combination of design and quality of finishes to meet your project objectives.
If you are looking to build a larger 4-5 bedroom, architecturally designed and custom specified home with multiple living spaces and/or use premium high-end materials and finishes, you will need a budget starting around the $2.5 million mark.
The Quality Equation - how premium do you want to go?
Before undertaking any renovation project, it’s worth considering the quality of the fittings, finishes and materials you’d like to use. A good Architect will be able to provide advice on how you can spend more on some areas, and less on others, to create the perfect balance between luxury, style and budget.
“We help our clients find the right balance between the magazine wow factor and everyday living practicality, in order to align their vision with their budget. Some clients have a clear aesthetic vision for their project and we help them choose the right materials, fittings and structural design to realise that vision. Others just know they need more space and seek our help to achieve just that within their budget. No matter which angle you’re coming from, we help all our clients achieve that balance of beauty and practicality - there’s only pain in your future if you lay expensive white carpet if you have young children and a puppy coming post-renovation!” - James Pilcher, Founder, Director and Principal Architect, MILEHAM Architects + Builders.
Here’s a quick rundown of the levels of quality you can expect at various quality brackets:
So how should you go about it?
Manoeuvring the toggles of what can be achieved cosmetically and structurally within various budget brackets and quality levels is a true mixture of art and science. What starts out as a simple Pinterest mood board can quickly evolve into a labyrinth of mind boggling options of quotes, quality levels and ‘you could do this with that, or that with this’. Working with a professional Architect and builder will remove the confusion of options and help bring it all together so you achieve the most optimal budget and aesthetic outcome which aligns with your lifestyle goals - because remember, they do this everyday and they have seen it all.
As full service Registered Architect and Licensed Master Builder with all construction quotes prepared in-house, MILEHAM has an intimate knowledge of today’s design, planning, and construction costs, and the materials which align best with various durability, practicality and aesthetic outcomes. To understand how to best align your budget with your aesthetic goals, book your Discovery Call with MILEHAM today.
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