Planning a house extension can be exciting as it adds more space and increases the value of your property. However, it’s a significant financial commitment that you need to plan well. The key to making sure your project runs smoothly is a solid budget. For Brisbane homeowners, there are a few unique factors to consider like council approvals, construction costs, and even the ever-changing property market. In this step-by-step guide, we’ll walk you through how to create a realistic budget for your house extension project. Whether you’re adding an extra bedroom, expanding your living space, or creating a new outdoor area, we’ll help you create a robust budget to ensure your project goes smoothly and doesn’t come screeching to a halt due to lack of funds.
1. Determine the Scope of Your Extension
Before you can talk numbers, you need to figure out exactly what you want from your extension. Is it a new bedroom for the kids? A new kitchen? Or maybe a sunroom to soak up Brisbane’s gorgeous weather? Whatever it is, you need to have a clear picture of it. Start by outlining the size and the type of extension you’re aiming for. This will help you and your builder get a clear direction to work with. It’s always a great idea to consult with local home extension experts early on. They’ll provide an estimate based on current construction costs, giving you a more accurate idea of what you’re in for.
During the planning stage, don’t forget to factor in Brisbane’s climate. Insulation, ventilation, and materials that handle the hot summers and nippy winters will be key to keeping your new space comfortable all year round.
2. Estimating the Total Cost of the Extension
Now that you have determined what you want, it’s time to dive into the numbers. Here’s a breakdown of the main costs to consider for a home extension:
Design and Planning Costs
Architects, draughtsmen, or engineers will be required to design your extension. These services are essential to ensure that your plans comply with Brisbane City Council regulations and to avoid any costly hiccups during construction and approval.
For basic design services, for a basic single-story extension expect to pay around $5000. For more complex extensions or for a design package with more inclusions such as detailed drawings, and 3D renderings, prices can increase upwards of $15,000+
These figures will give you a rough idea of the costs involved in this stage so you’ll be ready for approval and construction.
Approval and Permit Fees
Every extension needs the right approvals from the council. It’s important to set aside a budget for permits and any necessary inspections during your planning. Here are the common approval and permit fees involved:
- Development Approval (DA): This is required if your extension affects zoning laws, heritage overlays, or flood zones. Fees generally start at $706.80 for basic applications and can increase for complex projects like heritage properties. Bear in mind the cost can vary significantly depending on the nature of the project and the council’s requirements.
- Building Approval (BA): All structural work requires a Building Approval to ensure that it complies with the Building Code of Australia. This is usually handled by a private building certifier with fees starting at $1,500 for basic extensions.
- Plumbing and Drainage Approval: If your extension involves adding or relocating plumbing fixtures (e.g. kitchen or bathrooms), plumbing and drainage approval is necessary. The cost usually ranges from $600 to $1,000, which covers permit application, assessment, and inspection fees.
- Compliance Inspections: After construction, compliance inspections ensure that the building and plumbing work follows the approved plans and regulations. Building inspections occur at key stages like foundation and final completion, while plumbing inspections are done before walls are closed and final completion. Fees for these inspections roughly range around $300 and $600, depending on the number and scope of inspections required.
For more detailed information on approval costs, visit the Brisbane City Council Development Application Fees and Plumbing Fees pages.
Building Costs
Expect to pay around $1,500 to $4,000 per square metre for construction, depending on the type of extensions (e.g. secondary story vs single story), the room you’re constructing (e.g. bedroom vs bathroom & kitchens), and quality of the finishes (e.g. basic vs luxury). Keep in mind that these prices can fluctuate based on local demand for builders and materials. For a more detailed breakdown, you can explore our blog post on Brisbane house extension costs to better understand the specific expenses you might face.
Landscaping or site preparation:
If your project involves excavation, retaining walls, or other landscaping work, you’ll need to factor those into your budget, too. The budget you should allocate for this is highly dependent on your block of land, its severity of slope and retaining wall requirements and the scope of your extension. For greater clarity, you can reach out to local landscapers and retaining wall builders in Brisbane to get a better idea of expected costs. Many companies offer free quotes which can help you budget accordingly.
3. Accounting for Contingencies
No matter how well you plan your home extension, there’s always a chance something unexpected will come up. Whether it’s discovering asbestos that needs removal or hitting a delay due to summer storms, it’s always smart to add a buffer to your budget. When it comes to contingency funds, a rule of thumb is to set aside 10-15% of your total project cost. This will give you some breathing room if things go off-track which is common with house extension projects
4. Financing Your Home Extension
The next step is to figure out how to fund your project. Depending on your situation, you have a few different options:
- Personal savings: If you have enough savings to cover the project, then that’s great! You don’t have to worry about loans or interest rates.
- Personal loans: If your personal savings can’t handle the cost, you can always look into taking out a personal loan to finance the extension. Many Brisbane lenders offer
competitive rates for home improvement loans, so it’s worth looking around. - Refinancing your mortgage: If you’ve built up equity in your home, refinancing your mortgage could free up the funds you need for the extension. However, keep in mind that Brisbane’s property values can affect how much equity can tap into.
- Government grants or rebates: Occasionally, there are government incentives or rebates available for home improvements. Check if there are any Brisbane-specific or Queensland-wide programs that can help offset costs. If you are a first-time homebuyer planning substantial renovations, Queensland’s First Home Owner Grant might be an option.
5. Managing Your Finances Throughout the Project
Once your project starts, it’s important to keep a close eye on your finances. Here are a few tips to help you keep track of everything:
- Set a payment schedule: Work with your builder to set up a payment plan. Usually, this involves a deposit upfront, progress payments throughout, and a final payment when the job is done. Understanding the key steps in the home extension process will also help you have a greater understanding of when certain payments need to be made and stay on top of both the timeline and costs, ensuring a smoother experience.
- Track your spending: Whether you prefer a simple Excel sheet or a dedicated budgeting app, make sure you’re keeping track of all your expenses. This will help ensure you stay on budget and avoid overspending.
- Stay in touch with your builder: Clear communication is key to staying on top of costs. Regular updates will help you catch any potential budget changes before they become a big issue.
- Fixed price Building Quote: To keep expenses under control, it also helps if you have set up a fixed price building quote in your contract with your builder. A fixed-price building quote means that you have agreed to pay the builder a specified amount based on the design plans, if the total cost of the build exceeds the quote then the builder is responsible for covering the extra costs, this puts the onus on the builder to ensure things go smoothly and stays on budget, and also encourages greater transparency between both parties. We offer a fixed-price building quote on all our extension projects providing peace of mind to our clients.
Creating a Smart Budget for Your Home Extension
Budgeting for a home extension might feel overwhelming at first, but with the right plan, it’s totally manageable. The key is to be realistic, account for contingencies, and stay on top of your finances throughout the project. Before you finalise your budget, it’s worth thinking about how your extension can add long-term value to your home. Well-planned home extensions can significantly increase your property’s value especially if you improve your outdoor living spaces or modernise key areas like the kitchen or bathroom. Aside from that, you can save on operational costs over time when you invest in energy-efficient designs like better insulation or solar panel installation.
Remember, don’t hesitate to reach out to our team of professional house extension builders. We can help you avoid costly mistakes and ensure your home extension is both beautiful and budget-friendly. Call us today for expert guidance and get started on building the home extension you’ve always dreamed of.
