Flipping through renovation shows like The Block or Channel 7’s ‘Dream Home’, it’s easy to think turning a fixer-upper into a dream home is your golden ticket to wealth.
Those dazzling before-and-after transformations make it look like a breeze. But let’s be real—behind the glittering new kitchens and perfectly staged living rooms are sneaky renovation costs just waiting to pounce on your budget.
But fear not! Transforming your space doesn’t have to leave you crying over receipts. Whether you’re tackling a modest refresh or a top-to-bottom overhaul, there are ways to outsmart those hidden expenses.
So, grab your toolkit (or maybe just your calculator) and let’s dive into this playful guide to keeping your wallet intact while making your home renovation dreams come true.
Crunch the numbers
First things first, let’s talk math—yes, the kind that saves you cash. Experts swear by tried-and-true percentages to help you nail your renovation budget. The golden rule? Spend between 5 per cent and 10 per cent of your home’s total value on renovations.
Some pros break it down further, recommending you allocate 15 per cent of your budget for the kitchen, 10 per cent for bathrooms, and around 3 per cent for those “other” rooms.
But remember, not all rooms are created equal. Kitchens and bathrooms are the VIPs of home improvement—they’ll give you the best bang for your buck.
Fancy updating the pool area or building a home gym? Proceed with caution unless you’re planning to be the neighbourhood’s entertainment hub.
Research like a real estate detective
Before you grab that sledgehammer, do some sleuthing. Start by checking out property prices in your area.
Real estate websites like Domain or View.com are gold mines for this kind of intel, and your local agent can also dish out some insider tips. To go pro, consider hiring a licensed valuer. Yes, there’s a fee, but it’s a small price to pay for knowing exactly how your property stacks up in the market.
This intel will help you figure out if your dream renovation is worth the investment—or if it’s more like a high-stakes gamble on house roulette.
Budget like a boss
Creating a renovation budget sounds like a no-brainer, but sticking to it? That’s where the real challenge lies. Online tools like budget calculators can help you plan every penny and even spot where you might be overspending.
Got a bathroom overhaul priced at $20,000 but only $10,000 to play with? No sweat. Scale back to a cosmetic refresh—new tiles, a fresh coat of paint, and voilà! Your wallet will thank you.
Get quotes and prepare for surprises
Next up: your squad of trusty tradies. Before you roll out the red carpet for contractors, be sure to shop around. Gather multiple quotes to dodge overpaying for a job that might not even live up to your Pinterest-inspired expectations.
While you’re at it, don’t forget to budget for materials—you’ll want to know exactly how much those fancy tiles or sleek countertops are going to set you back.
Be sure to brace yourself for those sneaky hidden costs. That mysterious water stain in the corner? It’s not just “character”, it’s water damage, and it needs fixing.
And let’s not overlook the real casualty of a long kitchen reno—your dinner routine. If your stove is out of commission for weeks, prepare to get cozy with your local takeout joints. Just remember, a diet of pizza and pad thai might cost more than you think (both for your wallet and your waistline).
Keep emotion out of it
It’s easy to fall head over heels for those luxury upgrades—who wouldn’t want marble countertops or a spa-like bathroom? But think like an investor, not a homeowner.
Over-the-top choices might not impress future buyers as much as you’d hope. Sometimes, a cost-effective alternative can add just as much value without draining your savings.
And if you’re planning on packing up and moving in the near future, keep your upgrades modest. Dropping $50,000 on a sleek new home office might feel great—until you’re living across the country in six months with no return on that pricey investment.
