Unexpected Renovation Costs That Can Explode Your Budget
Home renovations can be a wonderful way to rejuvenate your living space, but it can just as easily blow your savings account to smithereens. Everyone knows kitchens and bathrooms can be expensive to do up, but there are all sorts of hidden costs that can spiral out of control. A fast cash loan can get you out of trouble if the worst happens, but it’s best to prepare for these unexpected renovation costs ahead of time. We’ve put together a list of things you can factor into your budget, as well as some tips for renovation budgeting and estimating costs in general.
Overview
- Unexpected renovation costs
- Hiring a pro vs DIY
- How much should you spend on renovations?
- How to estimate renovation costs
Unexpected renovation costs
If it can go wrong, it will go wrong – a saying that holds true for most renovation jobs. You can’t budget for everything, like unearthing rusty old pipes that need replacing, but you can think ahead. There are plenty of costs that you might not think of before starting your renovation that you can start budgeting for today!
1. Accommodation
Think you can still live there? Think again. Some small renovations that go room by room might be manageable. You can even work around a kitchen reno if you’ve got a gas stove and an outdoor area to cook. But sometimes circumstances force you to shut off the water, peel up the floor, knock down walls, or put down fresh paint in the room you were planning to sleep in.
Suddenly, before you’ve had time to prepare, you realise you won’t be able to live in your own home for a while. You might be in luck if you have friends or family willing to let you stay with them, but otherwise you’ll have to pay for a place to stay. Hotels and Airbnbs aren’t cheap, and without easy access to your kitchen and pantry, you may find the cost for your three square meals a day skyrocketing.
Nobody wants to see their renovation dream turn into an extended couch-surfing hotel-hopping nightmare. So before you sign off on the work and bring in the wrecking crew, make sure you’ve got a backup plan in case staying at home no longer becomes an option.
2. Energy bills
It’s hard to tell how much your power bill will creep up during renovations, and it might seem like an incidental cost at first. But between multiple power tools, charging batteries, and workers all drawing power throughout the day, you’re bound to see an increase, especially if your renovations take longer than you originally thought.
You can always get an emergency loan for an unexpected bill, but if you budget for higher energy use from the beginning, you won’t get caught out down the line when it’s due.
3. Garbage disposal
Are you ripping up old carpets? Knocking down a wall? Gutting a kitchen? All of those jobs will see you left with a huge pile of waste to dispose of. Even jobs that seem small at the start might accumulate more waste than you think, like dropsheets and tape for a painting renovation.
You can hire a skip to dump it all while you work, which means you don’t have to take it anywhere. Or you might have a vehicle large enough to ferry it all to the dump, but you’ll still have to pay for disposal at most waste management or recovery centres. But unless you’ve timed it perfectly to line up with a kerbside collection, you’ll be forking out something to get rid of it, so make sure it doesn’t become another unexpected renovation cost!
4. Cleaning
Even once you’ve disposed of all the rubbish, you’ll still be left with a big cleaning job on your hands. All those dirty bootprints on your carpet might need more than a simple vacuum to clean off, and unless you’ve sealed off every other room, chances are there will be traces of renovation dust throughout your home. If you’ve done any work in your backyard, expect the cleanup to be a mighty task. You might even need to fork out for some new landscaping if you’ve had machinery driving up and down your lawn. So don’t make the mistake of capping your budget before you’ve factored in the clean up.
5. Furniture
Renovations almost always come with some collateral damage, where it’s an unexpected hole in the wall or a paint-stained couch. You can budget for repairs and replacements, but it might be a good idea to hire a storage shed so you can get your furniture out of harms’ way.
Sometimes, even if you keep all your belongings safe while you renovate, you can return only to find none of it suits your new space! If you haven’t factored a new couch into your reno budget, Swoosh can help out with a furniture loan so you can get your space looking perfect sooner.
Hiring a pro vs DIY
This next section goes out to all the people who’ve said, “How hard could it be?” Whether you’ve got some building experience or you’re simply diving head first into a challenge, doing a renovation yourself can be fun and rewarding. But it can also quickly turn into a nightmare if you stumble across an unexpected problem, your work doesn’t hold up as well as you thought it might, or you end up needing an expensive tool most people don’t have lying around in the shed.
Some jobs are more suited to DIYing than others. For example, you should always seek expert advice on anything to do with the structure of your home, but painting a bedroom is very forgiving. You might waste a little paint if you make a few mistakes, but it’s easy enough to paint over. There’s also the added benefit of insurance when you hire a professional to do your renovations. If they make a mistake, their insurance will cover the expense or extra work it takes to fix it.
That being said, if you’re going down the DIY route, you should factor some contingencies into your budget. Always overestimate, rather than underestimate, the cost of tools and supplies, just in case you end up making a mistake and needing a little extra. It’s better to give yourself some wiggle room so a self-made mistake doesn’t end up grinding the entire renovation to a halt.
How much should you spend on renovations?
Renovations can be personal, so your budget can be whatever you need it to be to make your space feel like home. However, a good rule of thumb is to try not to spend over 5-10% of your home’s value. So if your home is worth $500,000, you should budget a renovation for somewhere between $25,000 and $50,000.
But, again, it all depends on what you’re hoping to achieve. Sometimes a fresh coat of paint and some new fixtures is all it takes to make a space feel new while keeping your budget low. If you’re purely renovating to increase the value of your home, it would be a good idea to seek a professional valuation to make sure you’re not wasting time and effort.
How to estimate renovation costs?
As you can see, budgeting for a renovation is easier said than done. The variations can be huge, so it’s best to break it down into smaller, manageable chunks.
Make a renovation budget
To make a budget, list out all the work you want done, and think about all the costs that could go into them. These include:
- Design and planning costs
- Materials
- Shipping and handling costs
- Labour
- Clean up
If you don’t know where to start, try ringing around and asking for quotes to give you a better idea of what the experts think your job should cost. It might also be a good idea to create two budgets: one that includes your ideal designs and the best materials, and another that’s full of cheaper options. If you find you can’t afford your dream scenario, having both budgets can help you figure out what truly matters to you, and what you can afford to compromise on.
What is the most expensive part of a renovation?
According to RIFCON Building’s 2025 renovation cost guide, kitchens and bathrooms top the list of most expensive renovation jobs. That’s because high-quality countertops and cabinetry can be incredibly expensive, as well as new appliances that drive the price up. Labour costs associated with plumbing and tile work also factor into these rooms being the most expensive part of a renovation.
How much does a renovation cost per square metre?
According to the experts at Three Birds Renovations, the average cost of a renovation per square metre is usually between $2000-$4000. Of course, it all depends on the size and build quality of your home, as well as how much work you’re wanting to do.
Renovations get the better of your finances?
No matter how prepared we think we are, the unexpected can always come to bite us. If you find your budget coming up short, consider a personal loan from Swoosh. We offer fast cash with a fully online application you can complete in minutes. Contact the team at Swoosh today to find out more.
FAQs
Why are bathroom renovations so expensive?
Counter tops and cabinetry are expensive materials that drive up the cost of a bathroom renovation. High labour costs also play a part, with plumbing and tiling jobs costing Aussies a pretty penny.
How much does it cost to renovate a kitchen?
Kitchens are typically one of the more expensive rooms to renovate, with figures from 2022 suggesting most Australians were forking out somewhere between $25,000 to $50,000 for an average sized kitchen.
What adds the most value when renovating a house?
You might not like to hear it, but those same rooms that cost the most to renovate also add the most value to your home. People value a nice kitchen and bathroom, so it can make a big difference. Other ideas include boosting your kerb appeal with an exterior paintjob or some frontyard landscaping.
