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Home Renovation Budget Guide: Where the Money Really Goes
Most renovation budgets are fiction written before the first wall is opened. This guide explains how renovation costs actually behave — and how to build a budget that survives contact with reality.
Cost per square metre: the three tiers
A basic cosmetic refresh (paint, flooring, fixtures) runs $250–450 per m². A mid-range full renovation — new finishes plus some electrical and plumbing — runs $550–850 per m². Premium work with layout changes and designer finishes: $950–1,500 per m².
These rates include labour and materials. The Renovation Cost Calculator applies them to your area and adds the two rooms that break the curve.
Kitchens and bathrooms break the curve
Kitchens and bathrooms are 15% of the floor area but 40–50% of a full renovation budget. Plumbing, tiling, cabinetry and appliances concentrate cost: a mid-range bathroom runs $8,000, a kitchen $12,000, regardless of the apartment’s size.
This is why per-m² estimates fail when applied blindly: a 50 m² apartment with a new kitchen costs nearly as much as a 70 m² one without. Always budget these rooms as fixed line items.
The contingency is not optional
Open a wall in a pre-1990 building and you will find something: aluminium wiring, galvanised pipes, a floor that is 6 cm off level. Keep 10–15% contingency for modern buildings and 15–20% for older stock.
The contingency is spent in most projects — not because contractors are dishonest, but because buildings hide their condition. A budget without contingency is simply a smaller budget with a surprise at the end.
Where to save without regret
Demolition, painting and flat-pack assembly are the safest DIY savings — typically 10–15% of the total. Electrical, plumbing and waterproofing are the worst places to save: failures there cost multiples of the saving to fix.
Use the material calculators to check contractor quotes line by line: the Paint Calculator, Flooring Calculator and Drywall Calculator give you independent quantities, so you can spot padded material lists instantly.