Business in the front, party in the back: How to renovate a terrace house for the 21st century

Lining the streets of our inner city suburbs with their stately facades, terrace houses are some of Australia’s most desirable properties, and some are hiding a surprising secret.

Much like a mullet, well-renovated terraces are “business in the front, party in the back”, with sought-after period features backed up by expansive open-plan living areas boasting indoor-outdoor flow.

Turn-of-the-century terraces are in high demand and low supply, and therefore command premium prices, according to Property Mavens founder Miriam Sandkuhler.

“Those period properties simply aren’t being built any more,” she said. “They attract an emotional buyer and an emotional buyer tends to attract a premium. Everyone wants something that’s scarce.”

For house hunters, terraces can represent a challenge, as despite cosmetic updates or bolt-on additions over the years, original floor plans often aren’t suitable for modern living and often need a major overhaul. So how can a savvy renovator revamp a terrace while maximising value?

The challenges of renovating a terrace

In the late 19th and early 20th century when the majority of terraces were built, homeowners didn’t have the same infatuation with outdoor living as they do today.

The backyard was more of a utility area to hang washing and put the loo, which in those days was outside. The bathroom is often found at the rear of the property, while kitchens are in the middle and bedrooms and living areas are at the front.

Creating a connection with the outdoors was one of the main challenges faced by Ryan Braun and his wife Emily when they renovated their terrace in Redfern, which has just been listed for sale.

“Relocating all the plumbing from the back of the house to the middle of the house was a substantial cost,” he said. “But it allowed us to open our house from boundary to boundary and create a kitchen more likely to be seen in a harbourfront home than a terrace.”

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The couple began their renovation by restoring the house to a habitable state before moving in and completing the project over several years. “We lived here for two years with a microwave, electric hot plate and an old sink with no hot water,” Mr Braun said.

A major consideration when renovating a terrace is natural light, according to Mr Braun. “Light is hard to get when you’ve only got a front wall and a rear wall, and a lot of people don’t have access to ceiling space,” he said.

The couple overcame this issue by installing large skylights above the kitchen, which Mr Braun considers the home’s best feature.

What renovators need to know

Professional renovator Naomi Findlay said terrace renovations were often “layered” with complexity due to the age of the building and the compact, close-quarters nature of these types of properties.

“Generally speaking, the access to the property is a bit more difficult,” she said. “Often it’s shared walls so you need to be really conscious if you start jackhammering the plaster of your wall what you could be doing to the walls next to you.

Neighbours should be consulted at every stage of the renovation, and often their consent is required to work on common property such as party walls.

“In some cases there needs to be a risk management plan in the beginning to make sure what happens doesn’t affect those next to you,” Ms Findlay said.

Councils require period facades to remain intact during a terrace renovation. Photo: iStock

Buyers looking to pick up a terrace in a rundown state shouldn’t necessary expect a bargain, according to Ms Sandkuhler.

“Unrenovated properties in the right area tend to attract higher prices because everyone wants to put their mark on it,” she said.

Despite the small footprint of a terrace, structural changes mean significant capital often needs to be invested in a renovation.

In expensive inner city suburbs where terraces are common, future buyers may expect a high quality fitout, which can affect the profitability of a project, according to Ms Sandkuhler. “It has to take into consideration your buyer demographic,” she said.

Mr Braun, who is a carpenter by trade, handled the building and construction work. But despite his skills on the tools, he chose to outsource tasks such as painting and plastering, even though these jobs could be considered within the realm of a DIYer.

“If you’re trying to produce a high-end product, it’s more effective to go to work and pay someone who’s a professional in that area,” he explained. “If you intend to turn a profit, you’ve got to know the market.”

Top 5 tips for renovating a terrace

1. Restore the structure – Terraces are usually over a century old, so engineering experts may need to be engaged to ensure the property is structurally sound. Ceilings, render, floorboards, joists, door frames and skirting boards often need to be replaced. Rising damp is common, but treatable.
2. Protect period features – Enlist a heritage expert to restore or recreate original features including wrought iron balustrades, arches, mouldings, ornate ceilings and fireplaces.
3. Flip the floor plan – A typical terrace renovation usually sees bedrooms positioned in the front section of the building, or on the first floor, with the “lean-to” section at the rear demolished to create open-plan living areas with indoor-outdoor flow. Bathrooms are positioned in centre of the property, near the bedrooms.
4. Bring in natural light and air – With few side windows, skylights should be installed where possible, and stacking or bifold doors utilised at the rear, which also improves ventilation. Plans usually must include a light well or central courtyard to prevent overshadowing of neighbours’ windows.
5. Consult with neighbours – The close proximity of other buildings in the row mean neighbours should be kept abreast of your plans. Ensure your builder has all relevant insurance in case something goes wrong.