Renovating
How Can a Home Renovation Cost the Same as a Project Home?
A three-bedroom project home can often be the same price as a mid-size renovation, but are you getting more value for money?
If you’ve ever wondered why you can get a whole off-the-plan cookie-cutter house for the cost of small architect-designed extension comprising of little more than a new kitchen and living room, read on. This Q&A guide should explain why.
Why do project homes seem to offer more for less?
In the simplest of terms, this is all about volume. The more homes built from the same design, the less costly the components. Think about purchasing clothes from a chain store as opposed to getting custom-made garments from a tailor. The chain store clothes are pretty good – they fit okay (even if occasionally too long or short), the colour is pretty good (maybe not the exact hue you were after), and the quality is not bad (although that depends on which chain store you’re shopping at). But then, there are thousands of items just like them on the racks in stores around Australia and the world.
In the simplest of terms, this is all about volume. The more homes built from the same design, the less costly the components. Think about purchasing clothes from a chain store as opposed to getting custom-made garments from a tailor. The chain store clothes are pretty good – they fit okay (even if occasionally too long or short), the colour is pretty good (maybe not the exact hue you were after), and the quality is not bad (although that depends on which chain store you’re shopping at). But then, there are thousands of items just like them on the racks in stores around Australia and the world.
What differentiates a renovation from a project home?
Compare off-the-rack clothing design to having a tailor or dressmaker sew a custom design for you. First they’ll measure you, then you’ll discuss design and fabric, then they’ll start making the garment. There will be at least one, if not two, fittings to go through before the garment’s finished and when it is, it will fit you perfectly and no-one else will have an item exactly like it. It’s completely unique to you. In the case of custom-made design, it’s easy to see where the difference in price comes from.
Compare off-the-rack clothing design to having a tailor or dressmaker sew a custom design for you. First they’ll measure you, then you’ll discuss design and fabric, then they’ll start making the garment. There will be at least one, if not two, fittings to go through before the garment’s finished and when it is, it will fit you perfectly and no-one else will have an item exactly like it. It’s completely unique to you. In the case of custom-made design, it’s easy to see where the difference in price comes from.
What keeps costs low in a project home?
There are project homes that are already designed for you to choose from, and while their designs tend to have some variations to suit different block sizes and topography, your ability to change the design is limited. Still, the duplication of the master design reduces an architect’s involvement, and therefore fees. Plus, the materials, fittings and fixtures can be bought in bulk to further decrease costs.
There are project homes that are already designed for you to choose from, and while their designs tend to have some variations to suit different block sizes and topography, your ability to change the design is limited. Still, the duplication of the master design reduces an architect’s involvement, and therefore fees. Plus, the materials, fittings and fixtures can be bought in bulk to further decrease costs.
How can project homes guarantee lower material costs?
Because they’re building hundreds, if not thousands, of homes every year, the project home companies have great leverage with manufacturers and suppliers. After all, if you’re buying windows for 5,000 houses every year, you’ll be paying less for them than someone who’s buying windows for five houses a year. And the same goes for all the other components that make up a house.
Because they’re building hundreds, if not thousands, of homes every year, the project home companies have great leverage with manufacturers and suppliers. After all, if you’re buying windows for 5,000 houses every year, you’ll be paying less for them than someone who’s buying windows for five houses a year. And the same goes for all the other components that make up a house.
Won’t the building costs of a project home be the same as a renovation?
In a project home, the designs are fixed and the materials are set, so there are no surprises for the tradesmen working on the site. They’ve done the same thing many times before, so they become quick and efficient at it. That keeps costs down because the project home companies know exactly how long it takes to do site works, pour the slab, and erect the frame, right through to building out the kitchen and tiling the bathroom.
In a project home, the designs are fixed and the materials are set, so there are no surprises for the tradesmen working on the site. They’ve done the same thing many times before, so they become quick and efficient at it. That keeps costs down because the project home companies know exactly how long it takes to do site works, pour the slab, and erect the frame, right through to building out the kitchen and tiling the bathroom.
Why is the building of a uniquely designed renovation so expensive?
A bespoke renovation, on the other hand, is starting from scratch every single time – the design of the renovation is completely unique to your house and site. It must accommodate the existing building and topography, as well as your design needs. Tradesmen working on your project are, of course, experts in their trade, but as they haven’t done your exact project before, there may be unexpected surprises that pop up on a job. Dealing with these takes time and can have a knock-on effect to other trades.
A bespoke renovation, on the other hand, is starting from scratch every single time – the design of the renovation is completely unique to your house and site. It must accommodate the existing building and topography, as well as your design needs. Tradesmen working on your project are, of course, experts in their trade, but as they haven’t done your exact project before, there may be unexpected surprises that pop up on a job. Dealing with these takes time and can have a knock-on effect to other trades.
Can there be extra costs in a renovation?
The cost of custom-made elements also adds to your total renovation cost. While flatpack kitchens are great, there’s a reasonable chance that your renovation will have some kind of custom joinery that, again, is designed and will be built specifically for your house. Just like a tailor-made dress or suit is fitted precisely to your body.
Planning a successful building project
The cost of custom-made elements also adds to your total renovation cost. While flatpack kitchens are great, there’s a reasonable chance that your renovation will have some kind of custom joinery that, again, is designed and will be built specifically for your house. Just like a tailor-made dress or suit is fitted precisely to your body.
Planning a successful building project
What are the added ‘extras’ in a project home?
Do you ever go to display villages just for fun? Many project homes do not include driveways, landscaping and fencing in their price – and so the display home that looks so fabulous is usually the top of the line model that has multiple extras added to it (at an additional cost). There are also little details like the fact that project home kitchens will tend to have cupboards rather than drawers, as cupboards are cheaper to build.
Do you ever go to display villages just for fun? Many project homes do not include driveways, landscaping and fencing in their price – and so the display home that looks so fabulous is usually the top of the line model that has multiple extras added to it (at an additional cost). There are also little details like the fact that project home kitchens will tend to have cupboards rather than drawers, as cupboards are cheaper to build.
Which is best?
Comparing a project home to a renovation or custom build is like comparing apples and oranges, but it’s good to have an idea of where those price differentials occur so that you can make an educated decision about which path to take. Both approaches can yield a great result and, as with everything, your budget and outcome will be unique to you. Both can cost almost the same but what you get will be entirely different. Ultimately you need to decide if a unique design for a smaller area is preferable to a complete home that is a duplicate design.
Comparing a project home to a renovation or custom build is like comparing apples and oranges, but it’s good to have an idea of where those price differentials occur so that you can make an educated decision about which path to take. Both approaches can yield a great result and, as with everything, your budget and outcome will be unique to you. Both can cost almost the same but what you get will be entirely different. Ultimately you need to decide if a unique design for a smaller area is preferable to a complete home that is a duplicate design.
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Have you bought a project home or would you prefer to have a custom-built home? What extras would you be happy to pay for in either?
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Find a home-building professional in your area
Progress any way at all down the renovation path, and you will quickly discover that it’s fairly easy to get to $250,000 without trying too hard. That kind of money will get you a ground-floor extension, but it might not cover re-doing your upstairs ensuite as well – which is hard to understand when you flick through the Sunday papers and see page after page of project homes being offered for $250,000. That’s a four-bedroom, two-bathroom family home for the same price as a large living room and a kitchen reno. What’s the story?
Hidden costs in a kitchen renovation