Renovation

Before diving into a renovation project, it’s important to clearly define your goals and understand what you truly need — not just what looks good on Pinterest. Here’s what to consider:

Purpose of the renovation

• Are you updating for lifestyle, resale value, growing family needs, or accessibility?

Scope of work


• Decide whether it’s a minor refresh (e.g. paint, fixtures) or a major structural overhaul (e.g. extensions, layout changes).

Budget boundaries

• Know how much you’re willing to spend — and build in a buffer for unexpected costs.

Must-haves vs nice-to-haves


• Prioritise what’s essential (like fixing poor layout or worn-out bathrooms) over purely aesthetic upgrades.

Timeframe


• How quickly do you need it done? Timing may affect costs and contractor availability.

Living situation

• Will you live in the home during the renovation or move out temporarily?

Compliance and permits


• Understand what council approvals or building permits are required before you begin.

Finance options


• Consider if you’ll be using savings, refinancing, or applying for a renovation loan and how this fits your long-term financial goal

Organising a property valuation upfront is a smart first step when planning a renovation. It gives you a clear understanding of your home’s current market value and helps set realistic expectations for your return on investment. By knowing the ceiling price for similar homes in your area, you can avoid overcapitalising spending more on the renovation than the property will be worth.

A valuation is also essential if you’re refinancing or applying for a renovation loan, as lenders use it to assess your borrowing capacity. Beyond finance,
it can guide your budget decisions and help determine whether a full-scale renovation is justified or if a smaller update would be more cost-effective. Having a valuation in hand also adds credibility when dealing with contractors, real estate agents, or potential buyers, giving you greater confidence \
and clarity throughout the renovation process.

When planning a renovation, choosing the right loan structure can make all the difference not just in how much you can borrow, but in how flexible and cost-effective your funding will be. Depending on the scope of your renovation, you might consider options like a construction loan, home equity loan, or line of credit. Each comes with its own pros and cons, so it’s important to think about how and when you’ll need access to funds.

If you’re renovating in stages, a loan that allows progressive drawdowns might suit you best. If you’re refinancing to fund your project, look for a loan with a competitive rate, offset account, and flexibility for extra repayments to help manage cash flow. The right loan should support your renovation timeline, fit within your budget, and align with your long-term financial goals. Speaking with a mortgage broker can help you compare your options and make a confident, informed choice.

Renovations rarely go exactly to plan that’s why budgeting for unexpected costs is essential. Here’s how to stay financially prepared:

Add a contingency buffer


• Allocate an extra 10–20% of your total renovation budget to cover unexpected costs (e.g. structural surprises, material price hikes, or delays).

Factor in council fees and permits


• These are often overlooked and can add thousands depending on your project’s size and complexity.

Include temporary living costs


• If you need to move out during the renovation, plan for short-term accommodation, storage, or travel.

Budget for upgrades or changes


• Many homeowners make last-minute changes to finishes, fittings, or layouts — having room in your budget helps you say yes without stress.

Account for increased utility bills


• Renovations can spike your water, electricity, or gas usage, especially if tradies are onsite for long periods.

Plan for furnishings and finishing touches


• New spaces often need furniture, lighting, curtains, or landscaping don’t forget to include these in your overall plan.

Check your loan structure


• Make sure your renovation loan or refinance allows for drawdowns or redraws if extra expenses come up.