The joys of house renovating! Mum and I are in the throes of it as I write. We currently have no bathroom, there’s a Portaloo in the garden, and the local campground has been kind enough to let us use the showers.
As always when you start a renovation project you never quite know what is going to jump out and blow the budget. In our case it was the original 1950’s wiring, which is going to need completely replacing. That wasn’t on the list of ‘things we want to do’.
We are also very lucky to have an amazing team of tradespeople who are guiding us through the various projects that we have on the go. Technically, I’m the project manager, but the team are doing a very fine job of managing it all themselves, so I’ll stick to my spreadsheet of costs, which is getting longer by the day!
Why do we do it? There are multiple reasons, for us, it’s refreshing an older property that we knew was tired when we purchased it, so we were prepared to spend some money on it. Sometimes it’s easier to change what you already have rather than start over again with a new property (I really enjoy watching Love It or List it, the transformations are amazing). Sometimes we are just bored with our space and want to revamp it.
There seems to be something about renovating that brings out our inner spender. Maybe it’s the dream of a custom-built walk-in wardrobe or the thought of replacing those standard fixtures with something more… you. But before you give in to the urge to upgrade every corner, it’s important to keep an eye on your budget and allow for the hidden costs that pop up.
No matter where you start, your renovation can cost anywhere from $10,000 upwards, —no small sum! But that doesn’t mean your dream home is out of reach. You just need to be smart about where you spend your money.
Here are six tips to help you achieve your renovation goals without breaking the bank (or living on beans on toast afterwards).
1. Get real about the costs
We all love a good Pinterest scroll, but those picture-perfect spaces don’t come with price tags. Before you get too attached to a sleek Scandi living room or an ultra-modern kitchen, make sure you know what it will take to bring your vision to life.
Will you need custom cabinetry? Hidden wiring? Specialty finishes? Knowing the full picture upfront will help you avoid unexpected costs, especially if this is your first time navigating a renovation budget.
We have managed to recoup some of our costs, by selling the old stuff. It might not be what we want anymore, but there are plenty of people out there who are really creative at upcycling the old and turning it into something new. That’s a win for them and us.
2. Prepare for the unexpected
Even with a solid plan in place, things can still go sideways. Maybe you’re doing up a classic Kiwi villa, or perhaps you’ve just bought a brand-new townhouse. Either way, there’s always the chance you’ll run into something that wasn’t in the budget.
Homeowner stories are often filled with unexpected surprises. Needing to rewire the house, as we are doing, is not unusual. Knocking out a wall can uncover a multitude of to does, that you didn’t know about.
3. Splurge wisely
Yes, this article is about avoiding overspending, but sometimes splurging in the right areas can save you in the long run. Durable materials and high-quality fixtures might cost more upfront, but they’ll save you money down the road by lasting longer and avoiding costly repairs.
Work out what is really important to you, that’s the area that you want to make sure you don’t have to cut back on. What is not so important? This is where you may be able to save some costs.
Using our bathroom reno as an example, Mum and I had no idea there was such a range of toilets, both in function and price! We opted for a more standard cost effective one, to allow more budget for the shower which was very important to Mum.
Research, research and research again, either online or go and visit the various suppliers, get to know what works for you in terms of fit for purpose, and then look for some bargains, they are out there if you are prepared to put in some time to hunt them down.
4. Cut back on cosmetic works
Sure, detailed woodwork or a trendy tile pattern looks amazing, but these extras can add up fast if you’re on a tight budget. Instead of going all out, focus on smaller design details where they matter most.
Rather than covering an entire room with patterned tiles, why not create a feature wall or use it in just one area? This way, you get the impact without blowing your budget.
5. Keep what you can
It’s tempting to go for a total overhaul, but sometimes the smart move is to keep some of what’s already there. If you’ve got solid bones—like original flooring, decent cabinetry, or even fixtures that are still in good nick—consider working them into your new design rather than starting from scratch.
This is where your upcycling skills can come into play as well.
6. Get professional help
There’s a common misconception that hiring an interior designer will blow your budget. But in reality, a designer can help you save money. They know where to find cost-effective materials and how to stretch your dollar, plus they can help you avoid making costly mistakes. And, if like me, your not so great at colour, they can save you making a costly mistake by making sure your colour palette works and your kitchen cabinets aren’t going to clash with your flooring!
You set the budget, and they’ll make sure you stick to it, sourcing alternatives and suggesting creative solutions that won’t drain your bank account.
Don’t forget to listen to the tradespeople you are working with as well. They are experts in their field and can give some great advice and tips on how to be effective with your budget to help you get the result you want.
It doesn’t matter what your budget is; it is very likely that you will go over it. It seems inevitable, so make sure you have enough in the kitty for those contingencies and overruns.
Take before and after photos, that way when you are looking at how much you have spent, you can look back at what you had then and what you have transformed it into and remind yourself that it was all worth it in the end.
I’d love to hear your renovation stories; how did you go with your budget? What did you learn along the way?
*Lynda Moore is a Money Mentalist coach and New Zealand’s only certified New Money Story® mentor. Lynda helps you understand why you do the things you do with your money, when we all know we should spend less than we earn. You can contact her here.
20 Comments
Or possibly losing your mind, dealing with the New Zealand building industry.
Over the course of:
One desired refurbishment:
- A first quote to add about 10m2 and a garage to a house that was nearly double what I paid for the house 6 years before by a company recommended to me by a friend - it failed a couple of months later, owing $750k to their subbies (a bullet dodged - for me)
- Another building company recommended to me, by an ex-builder, that expressed interest and looked and then simply vanished for 2 months by which time I was talking to someone else.
- A third who wouldn't use the fixtures and fittings I had made, stockpiled or organised: I strongly suspect becasue they wouldn't get the retail markup from wholesale. I did supply chain for years. I know the lurks.
- A fourth I got in to do a deck as a trial and the work was rough enough for me to redo some of the cosmetic work myself.
One attempted build:
- A young architectural practice who it became very apparent wanted a client to fund them to build their vision, rather than what I was asking for.
- A second architect who was disorganised at a biblical level, kept trying to upsell me on pointless complexities and hugely expensive building automation I absolutely did not want or need, and seemed alarmingly less aware of materials than I was.
- A firm importing factory made houses from overseas that simply vanished over COVID - after the design and specification work was complete.
- I finally found an architect I trusted and we speak the same design language - and she's not from New Zealand so she's full of fresh ideas. And colour: not everything has to be depressive's black, coma-inducing beige, or rainy-day grey.
But here's the thing: I just don't think I've got the stamina to do it any more.
Seems to me an architectural designer would have been a better choice, not an architect. Perhaps you can do more leg work in what you want yourself and only let the architectural designer cover issues that are likely to cause building consent issues. I'm fortunate that I have rudimentary CAD skills and retired so I have time to investigate RMA and building requirements and get an architectural designer to pretty things up. Others have to engage an architectural designer all the way. (Architect for more than $500k, if not higher, building cost)
Not entirely sure about that: 'architect' #2 actually was an architectural designer, and the failed building firm had an architectural designer as well.
I don't think most people see the distinction between A and AD, other than cost. I look at places advertised as 'architecturally designed' and think: really?
Thanks. Being interested in house design and construction I'm aware of the difference and I think you are correct in most Joe Blogs not knowing the difference.
I hope you didn't get burnt a bit with having to put too much up front.
I'm hoping the construction downturn stays for at least another six months as designers and builders will be more inclined to accept contractual conditions that are not weighted in their favour. My preference is to separate design from construction.
My background is in manufacturing operations and product design, and the problem we had with separating design and build is that the designers become divorced from production realities and things get less practical, and therefore more expensive, to build.
The best place I worked for put new hire design engineers down on the production lines as techs for three months: no exceptions - including more than one PhD. Some of them didn't make it as their practical skills weren't up to snuff, but those who did were much better product engineers for it, as what they designed was practical to make.
I can't help but wonder if that's the case in the building industry; where if designers don't know the builder they're working with, and vice versa, it creates a gulf of knowing what the other is capable of, and from that come problems.
My own preference would be for a designer who has spent time on the tools as a builder, using modern construction techniques like prefabrication and materials like SIPS - but still has a strong aesthetic of simplicity and colour sense. Something of a unicorn, I suspect, as finding someone who can design something where the simplicity is convincing seems hard.
In product design terms, features and styling keep being added to obscure that the fundamental design is unimaginative and the functionality isn't great. Modern motor vehicles are good example. Manufacturers keep making car cosmetics ever-more complex and endless gadgets keep being added to very staid underpinnings that, while fine, are typically very dull and the complexity works against reliability.
As an instructive (for me) example: I watched a friend get a design from an Architect, who had worked in government for some years and was a long way from building reality. The original design was very complex: it had 11 level changes in the floor slab alone. Admittedly a hill site, but still! The architect also had a habit of body-scaling things like ceiling height to himself (5'8") when my friend is 6'3". In the end the ceilings went up, hallways got wider and the number of level changes came down to 5 or 6 (from memory). And the builder stopped having attacks of the vapours.
I'm in the industry and undertaking a full home reno Feb - June next year. It's a small job compared to what I work on on a day to day basis however the devil is in the detail and a job of any size needs respect.
The reno will be on a 1995 160m2 brick and tile (no style) house on a flat 700m2 site. We are adding a 70m2 second level and extending the living area by 16m2. We will go from 3 bed/ 2 bath/ 1 living to 5 bed/ 3 bath/ 2 living. Basically everything in the house will be new apart from the exterior wall framing and brick veneer. Budget is $444k incl GST with a very basic spec. We are moving out for the duration. Expecting to lodge for consent end of October.
With prices coming down now even 4 beddies in our area on good sites are still more than what we will have spent all in, so a reno was the way we decided to go.
Very interesting. I assume you are doing it yourself, which would make this an $800k to $1m reno if fully costed?
Having undertaken a really large reno (but no additional space), I think next time I'd knock down and start from scratch and really get the design we want.
Yes - will self manage and calling in a few favors. I'd say $6-700k alteration if i went to someone like Refresh or whomever.
Thought about demoing & building new but the bank wasn't too keen, and 2nd/3rd tier lenders, whilst good to deal with, weren't really our cup of tea.
Our hardstand coverage exceeds current council rules (over 1500m2) on our rural property. It's on council aerial photos back to the late 1990s, and is also on building plans submitted to council in the early 1990s. However, we can't prove the coverage was consented, and they can't prove it wasn't, because it predates their current system.
We want to put a pole shed on part of that hardstand area, which is close to existing buildings and is currently used for tractor and implement storage outdoors - we want to get them undercover. The council is forcing us to get a retrospective resource consent for the existing hardstand area before we can do this. There will be no change to drainage and no requirement for any other services.
The council has said we can get around this if we reduce our hardstand area (which includes our long 4m wide driveway used for harvester and stock truck access) to under 1500m2. Returning any of the hardstand to grass will not increase our productive capacity (it's all in driveway and building aprons) but it will risk reducing it by restricting large vehicle access.
Insert shrug emoji here.
It's driven by the terror of responsibility and liability as councils are essentially the insurers of last resort when building companies who do faulty work no longer exist.
Regulations can get simpler when liability for incorrect build work stays with the builder or their guarantor/insurance scheme. The current company laws allow firms to be quietly folded up before the chookies of quality come home to roost.
It used to be, and still be, that the banks required developers to create special purpose vehicles for specific developments: these were then wound up at the end of the development to cut off the tail of any claims that may arise.
Finding good suppliers is such a crucial step often glossed over. Spending a lot of time doing due diligance can save a fortune down the track (based on experience). Recently had to re-roof and the amount of crazy quotes and cowboys I had to sift through. Landed on a local supplier who were very good (https://www.arcclad.co.nz/roofing-auckland-contractors). But undertaking any home reno project in NZ really isn't for the faint hearted!
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