Setting a renovation budget requires more than just looking at material costs. Labour typically accounts for 40-60% of the total project cost, and permits can add another 5-10% depending on your location and the scope of work.
Start by researching average costs for your type of project. Kitchen renovations in Australia typically range from $15,000 for a basic refresh to $50,000+ for a complete overhaul. Bathroom renovations usually fall between $10,000 and $35,000.
Always include a contingency buffer of at least 15-20%. Hidden issues like water damage, outdated wiring, or asbestos are common in older Australian homes and can significantly increase costs if not planned for.
Break your budget into categories: demolition, structural work, plumbing, electrical, materials, finishes, and professional fees. This makes it easier to track spending and identify areas where you can adjust if costs start to climb.
Consider the timing of your renovation. Tradies are typically busiest from September to March, which can affect both availability and pricing. Planning your project for the quieter months may help you negotiate better rates.