What’s the average cost to renovate a kitchen?
The average cost of a kitchen renovation hovers between $15,000 and $40,000, but can be higher, as per hipages data. According to Three Birds Renovations, there are three common ways you might choose to renovate your kitchen.
- Budget kitchen renovation ($15,000 - $25,000): This tier is typically restricted to cosmetic upgrades or basic restoration works, such as painting peeling walls and replacing damaged fixtures with budget options, which may include prefabricated, flatpack benchtops or cabinetry.
- Midrange kitchen renovation ($25,000 – $35,000): The midrange tier offers more design flexibility; its budget could accommodate moderate structural changes to wiring and plumbing, and the installation of semi-custom fittings and quality appliances such as polyurethane-fronted cabinets, electric stovetops, and toughened glass splashbacks.
- Luxury kitchen renovation ($35,000 - $40,000+): The luxury tier spares little expense, permitting bigger structural changes to plumbing and wiring (with the possibility of expanding your kitchen’s footprint). A luxury renovation may also include the installation of fully customised cabinetry, natural stone benchtops, and brand-name electric stovetops and dishwashers.
Keep in mind that these figures are general estimates. The cost of your actual kitchen renovation can vary significantly.
What affects the cost of a kitchen renovation?
Factors that could impact the cost of a kitchen renovation typically include:
- Your home’s age: The older your home is, the more extensive your kitchen renovations are likely to be. For example, if your wiring is not up to current standards, that may have to be replaced.
- The size of your kitchen: A bigger kitchen (or expanding your kitchen) typically drives up renovation cost as more materials, hardware (like cabinetry and benchtops), and labour are required to accommodate a larger footprint.
- The quality of the materials: Generally, the higher the quality of a product, the more it will cost. For example, tapware with more durable washers or made of metals less prone to corrosion are likely to be more expensive. Another example is the type of surface chosen for benchtops – hard-wearing, solid stone usually costs more than cheaper, thinner laminated board.
- The style of the materials: The styling of a product can also change the cost of a product. For example, tiles can differ in price depending on how they are decorated. Generally, hand-painted tiles or artisan-glazed ceramics are considerably more expensive than mass-manufactured options in standard colours. Natural stone also usually costs more than manufactured tiles, even though they may look similar.
- Undiscovered problems: Renovation work could uncover existing problems, such as water-damaged house frames or mould infestations, which can result in delays, the need for more materials, and higher costs.
There are also hidden costs to account for:
- The cost of demolishing your kitchen and disposing of waste after
- The cost of eating out or setting up a temporary kitchen
- Council or strata fees and approvals. This is typically required if your kitchen is being structurally altered and will vary from state to state.
- The ‘real’ cost of the renovation could cost more than quotes given to you. That’s because quotes are working estimates and do not reflect delays or problems that may emerge during the renovation.
What parts of the kitchen cost what?
According to CO-architecture, different aspects in each kitchen renovation will cost more than others.
Cabinetry
Cabinetry is cited as the most expensive aspect of each kitchen renovation, generally comprising 30% to 40% of the entire renovation budget.
Cabinetry prices can rise quickly if you opt for:
- Higher-quality materials such as two-pac (a special, two-part paint finish that is generally harder and more durable than other coatings)
- More drawers than cabinet doors, which cost more to build or install
- Semi- or full-custom joinery
- More coverage.
Labour
Hiring a team of tradespeople to renovate your kitchen will usually take up 25% to 30% of your total budget.
Depending on the scale and size of the renovation, you may need to hire a
- Licensed electrician
- Building contractors
- Plasterers
- Plumbers
- Painters
Expect to be charged by the hour.
Appliances
Most kitchens include a built-in oven, stovetop, range hoods, and dishwashers. Installing new appliances can cost anywhere between $2,000 and $25,000, depending on:
- Brand prestige
- Specifications
- Energy rating: A higher star rating equates to a more energy-efficient appliance, meaning you spend less on electricity every time you use it. However, they usually cost more upfront.
Benchtops and splashbacks
Benchtop costs differ greatly between materials and dimensions, regularly costing as low as $1,500 and as high as $15,000. The same applies to splashbacks, which can cost anywhere between $500 and $5,000.
Here are some common materials in ascending order of cost:
Benchtop
- Laminate bench top
- Stone bench top
- Hardwood timber or stainless steel bench top
- Natural stone or marble bench top
Splashback
- Tile splashback (highly variable depending on type of tile)
- Acrylic splashback
- Glass splashback
How can you finance a kitchen renovation?
Apart from dipping into your own savings, there are several options available for would-be home renovators or DIY enthusiasts to consider:
Home loan
You may consider refinancing your home loan, topping it up (adding to its balance), or seeking a ‘line of credit’.
Borrowing through a home loan in order to fund a renovation can mean you get lower interest rates and a longer period to repay the funds than you might on another form of credit. Further, since your renovations will ideally add to the value of your home, increasing your equity, paying for the works via a mortgage could make sense.
However, home loans typically have a longer loan term than, say, a personal loan, which can mean you pay more in interest over time.
Personal loan
A personal loan could also be taken out in order to fund a renovation. While it’s worth keeping in mind that interest rates are generally higher for personal loans than for home loans, their shorter terms can mean less interest in total.
Credit card
It’s possible to finance a kitchen renovation with a credit card, depending on the cost and your ability to repay the debt quickly.
There could be some fringe benefits for using a credit card, such as extra insurance cover (in some cases) and rewards points.
However, credit card interest rates are typically much higher than home or personal loans, meaning interest can quickly accrue on large balances. If you can’t pay off your card’s balance each month, you run the risk of paying hefty penalty fees, accumulating even more outstanding debt.
If you are considering borrowing money with a personal loan or on your credit card to finance a kitchen renovation, you should ask for a copy of the Product Disclosure Statement (PDS) and Target Market Determination (TMD) from the lender.
Similarly, if you decide to refinance or take out a line of credit on your home loan, it’s a good idea to read through any relevant documents before making a decision.
