Renovation Mistakes That Could Cost You… And How to Avoid Them

Renovating can be a fantastic way to add value to your property, improve your living space, or boost your rental return. But before you start knocking down walls, it’s worth pausing to plan. A renovation can quickly turn from a smart investment into a financial headache if you don’t prepare properly.

As a mortgage broker in Wollongong and the Illawarra, I often speak with clients who are considering renovations, whether on their family home or an investment property. Here are the key things to think about before you begin.

Know your goals

Before spending a cent, ask yourself: Why am I renovating?

• If it’s your own home, consider whether you’ll stay long-term or sell in a few years.

• If it’s an investment property, focus on maximising rental return and property value without overcapitalising.

Clear goals will guide your choices and keep your budget realistic.

Plan your budget (and stick to it!)

As a rule of thumb, avoid spending more than 10% of your property’s value on renovations.

• Get multiple quotes.

• Include a contingency for unexpected costs they always appear.

A disciplined budget is your best safeguard against financial stress.

Are you overcapitalising?

Every suburb has a price ceiling, the maximum buyers are willing to pay. Before you renovate, research recent sales in Wollongong, the Illawarra, or your target market.

Focus on renovations that deliver strong returns:
✅ Kitchen and bathroom updates
✅ Extra bedroom or ensuite
✅ Outdoor entertaining areas
✅ Fresh paint
✅ Storage solutions

Luxury finishes may look impressive, but if buyers won’t pay extra for them, you could lose money.

DIY or call in the experts?

DIY can save money, but only if you know what you’re doing.

DIY-friendly jobs: painting, removing old flooring, dismantling cabinetry.
Professional only jobs: electrical, plumbing, structural changes, waterproofing.

Sometimes it’s worth paying for the speed, safety, and quality a licensed tradie provides.

How will you finance your reno?

There are several ways to fund your renovation, including:

• Refinancing or topping up your mortgage

• Using redraw or offset account funds

• Taking out a construction or personal loan

Not sure which option is best? Working with a home loan broker Wollongong homeowners trust means you’ll get tailored guidance to fund your project in the smartest way possible.

Final thought: plan before you renovate

A successful renovation comes down to planning, budgeting, and focusing on improvements that deliver value. Whether you’re upgrading your home or renovating for profit, make smart, cost-effective choices to get the best return.

Thinking about renovating? Let’s chat about how to finance your project the right way.

Get in touch today and let’s make your renovation plans a reality.