Renovating Your Property? Here’s How to Maximise Value & Finance It Wisely

Renovating can be one of the smartest ways to boost your property’s value, enhance your living space, or increase rental income. But without careful planning, what starts as a profitable project can quickly turn into a financial burden.

Before you pick up a sledgehammer, here’s what you need to consider—including how to fund your renovation strategically.

1. Define Your Renovation Goals

Ask yourself: Why am I renovating? Your answer will shape your budget, design choices, and financing strategy.

• For homeowners: Are you renovating for long-term comfort, or to sell soon?
• For investors: Will this upgrade increase rental yield or resale value?
• For house flippers: Are you prioritising quick, high-impact improvements?

Pro Tip: If selling, focus on cost-effective upgrades that appeal to broad buyer demand rather than personal tastes.

2. Set (and Stick to) a Realistic Budget

A common renovation pitfall? Underestimating costs. Here’s how to avoid it:

• Follow the 10% rule: Spend no more than 10% of your property’s value on renovations to avoid overcapitalising.
• Get multiple quotes from tradies—prices can vary significantly.
• Include a 15-20% buffer for unexpected expenses (e.g., hidden structural issues, material delays).

3. Avoid Overcapitalising—Know Your Market’s Ceiling

Every suburb has a price ceiling – a maximum price buyers are willing to pay. Before you renovate, research what similar homes in your area sell for.

If you spend too much, you risk pricing your property out of the market and losing money when you sell. Try to focus on renovations that deliver a return.

High-ROI Renovations Worth Considering:

✅ Kitchen refresh (new benchtops, cabinetry, or appliances)
✅ Bathroom upgrades (modern fixtures, re-tiling, or adding an ensuite)
✅ Fresh paint & flooring (instant visual appeal)
✅ Outdoor improvements (decking, landscaping, or a new patio)
✅ Storage & space optimisation (built-in wardrobes, open-plan living)

Renovations That May Not Pay Off:

❌ Overly custom designs (e.g., luxury finishes in a mid-range market)
❌ Extensive structural changes (unless necessary)
❌ Swimming pools (high cost, limited buyer appeal in some 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.

4. DIY vs. Hiring Professionals: What’s Worth It?

Some jobs save money if done yourself, while others require expert skills.

DIY-Friendly Tasks:

✔ Painting walls & trim
✔ Installing floating floors
✔ Demolition (e.g., removing old cabinets)
✔ Basic landscaping

Leave These to the Pros:

❌ Electrical & plumbing work (illegal without a licence + safety risk!)
❌ Structural changes (load-bearing walls, extensions)
❌ Waterproofing & tiling (poor work can lead to costly leaks)

Time vs. Cost: If a professional does it faster and better, the extra cost may be worth it.

5. How to Finance Your Renovation

One of the biggest challenges? Funding your project smartly. Here are the best options:

Option 1: Mortgage Refinance or Top-Up

• Access equity in your home at competitive interest rates.
• Ideal for larger renovations (e.g., extensions, full kitchen remodels).

Option 2: Construction Loan

• Funds released in stages as work progresses.
• Great for major structural changes or new builds.

Option 3: Redraw or Offset Account

• Use existing savings in your mortgage to avoid extra loans.
• Best for smaller, upfront costs (e.g., painting, flooring).

Option 4: Personal Loan

• Faster approval but higher interest rates.
• Suitable for quick, low-cost projects (under $50K).

Not sure which option is best? We’ll compare lenders and structures to save you money.

Final Tip: Plan Before You Renovate!

A successful renovation comes down to:
✔ Clear goals (sell, rent, or live in?)
✔ Smart budgeting (stick to the 10% rule + buffer)
✔ High-ROI upgrades (kitchens, bathrooms, curb appeal)
✔ Strategic financing (using equity, loans, or savings)

Ready to Renovate? Let’s Talk Finance!

Whether you’re upgrading your home or flipping an investment property, the right funding strategy can make all the difference.

📞 Book a free consultation today—we’ll help you:

• Access the best loan rates for your reno
• Structure finance to suit your budget
• Avoid costly mistakes

Contact us now and turn your renovation vision into reality—without the financial stress!