Avoid costly renovation mistakes.

Renovating your home can significantly increase its value, enhance your living space, and boost rental returns. However, without proper planning, a renovation can quickly become a financial burden. Here’s what you need to know to avoid common renovation mistakes and ensure your project is a success.

Define your renovation goals

Before you spend a cent, ask yourself: why am I renovating? If it’s your home, consider whether you’ll stay long-term or sell in a few years. For investment properties, focus on maximising value without overcapitalising. Clear goals will guide your renovation choices and budget.

Plan and stick to your budget

How much will your renovation cost? More importantly, how much should it cost? As a rule of thumb, spend no more than 10% of your property’s value on renovations. Costs can add up quickly, so obtain multiple quotes and budget for unexpected expenses.

Avoid overcapitalising

Every suburb has a price ceiling - the maximum price buyers are willing to pay. Research what similar homes in your area sell for before you renovate. Focus on renovations that deliver a return, such as:

• Kitchen and bathroom updates
• Fresh paint inside and out
• Extra bedroom or ensuite
• Storage solutions
• Outdoor entertaining areas

Luxury finishes and expensive fittings might look great, but will buyers pay extra for them? Keep your upgrades practical and aligned with market demand.

DIY vs. Professional help

Doing the work yourself can save money, but only if you know what you’re doing. DIY-friendly jobs include:

• Painting
• Removing old flooring
• Dismantling cabinets

Jobs best left to professionals:

• Electrical and plumbing work (illegal without a license and dangerous)
• Structural changes
• Waterproofing bathrooms

Consider the time vs. Cost trade-off. If a professional can complete the job faster and better, it might be worth the investment.

Financing your renovation

There are several ways to fund a renovation, depending on your budget and plans:

• Refinance or top up your mortgage
• Use redraw or offset account funds
• Consider a construction or personal loan

Not sure which option suits you? We can help you find the best way to finance your renovation based on your goals.

Final thought: Plan before you renovate

A successful renovation is all about planning, budgeting, and making smart choices. Whether you’re upgrading your home or renovating for profit, focusing on high-impact, cost-effective improvements will give you the best return.

Ready to renovate?

Thinking about renovating? Let’s chat about how to finance your project the right way. Get in touch today to explore your options and take the first step towards a successful renovation.

Contact us now to discuss your renovation plans and find the best financing solution for your needs.