How much does a kitchen renovation cost in Australia?

If you’re daydreaming about a kitchen upgrade and hoping to turn this into reality, you may be curious as to how much an Australian kitchen renovation costs.

Kitchen renovations can cost you anywhere from $15,000 to $45,000. They may range from small modifications and improvements to full-scale renovations and upgrades.

Average cost of kitchen upgrades and renovations in Australia

Source: BadelKitchens.com.au

A budget kitchen upgrade may be applicable for smaller spaces, like units, or for less extensive modifications, like a fresh coat of paint and new cabinets. For those lucky enough to splurge, a high-end renovation could mean a professionally designed new kitchen with the latest materials and appliances.

Put simply, the potential cost of your kitchen renovation will depend on your available budget and the extent of your modifications.

To help ensure you get the best value for your dollar, there are a few areas where you could potentially keep costs down for your kitchen renovation in 2022.

How to keep your kitchen renovation costs down

• Refresh, don’t replace

One of the most popular ways to keep your potential kitchen renovation costs down and maintain a healthy budget is to consider refreshing rather than replacing.

Projects in which you tear out and replace components of your kitchen, such as your cabinetry, may be more expensive than if you just gave them a refresh. For example, switching out your cabinet door handles with modern pulls or antique knobs can go a long way in upgrading your space. So can a coat of fresh paint.

Most renovation experts will also recommend leaving your kitchen plumbing alone when possible and instead prioritise refreshing things like the tapware and making better use of the space around the plumbing.

Not only could this save you money on your kitchen renovation but refreshing instead of replacing is a more eco-friendly and sustainable approach to home improvement.

• Make use of the space

Unless you are looking to renovate with a high-end budget and can afford to gut the space, one of the best ways to keep costs in budget is to try and keep your same kitchen layout. This means trying to keep the main features, such as the location of the oven or the sink, in the same spot.

As mentioned above, changing your plumbing or moving appliances connected to plumbing or and gas lines – like a dishwasher or oven – will involve hiring a third-party tradesman and paying for this labour. Instead, consider creating a kitchen transformation that makes use of the existing kitchen framework but with your much-needed upgrades.

• Functionality over style

Another factor that may help keep your renovation costs down is prioritising functionality over style. This can be especially important for heavy-use areas like countertops.

For example, one of the most popular modern countertop styles is marble, which can be a very expensive material, as well as being porous - so prone to showing any stains or spills. It typically needs to be resealed every six months to protect it from damage.

Instead, experts may recommend manmade quartz countertops made with quartzite. Not only is this material more durable and less prone to cracks, it’s also stronger and less brittle than natural stone.

How to finance a kitchen renovation in Australia

If you have the vision but are lacking the funds to complete your kitchen renovation, you may want to consider some financing options and whether they suit your financial situation.

• Home equity

A home equity loan is one option to consider to help finance your kitchen renovation. Lenders will calculate the difference in the market value of your property and the remaining balance of your home loan to determine your available equity. If you are eligible, you may be able to borrow up to 80% of this total value towards your renovation goals.

• Renovation personal loan

If you’re not keen to dip into your home equity, you may want to consider if taking out a personal loan is a better fit for your goals. Renovation personal loans may help provide most or all of the funds needed for your kitchen budget, depending on your financial situation and credit score.

There are a range of personal loan lenders offering renovation loans from 3.99%, with the average personal loan sitting around 11.7%, according to the RateCity database. Consider comparing personal loan rates, as well as fees and features, to find one that best suits you and your budget.

• Offset account

Recent data found that Aussie homeowners are around four years ahead on their home loan repayments, with the average amount sitting in their offset account around $100,000. If you’ve been making extra repayments into your offset account over the years, one common reason homeowners dip into these funds is to pay for home improvement projects, like a kitchen renovation.

Keep in mind that any money you withdraw from your offset account will reduce the amount your account is “offsetting” or decreasing the interest payable on your home loan. However, some homeowners considering selling may consider this a fair trade off if they are able to boost their property value through a renovation.

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