Ian Ugarte, author of 'Small Is The New Big', said the trick is to use styles and finishes that appeal to a broad home-buying base, assuming home buyers are renovating to sell, rather than live in.

“While the glut of reality programs has seen a steady increase in renovating generally, deferring to trending styles that are at best ‘quirky’ and at worst just plain ugly, is likely to not only inflate the cost of the renovation, but also significantly limit buyer interest in the property,” he said.

"The last thing you want to do is limit or restrict your buyer base by introducing features like curved walls and floating beds that might have personal appeal, but are likely to alienate a chunk of possible buyers and potentially blow out your renovation budget in the process."

The fresh warnings come as the Australian Bureau of Statistics' (ABS) building activity data shows an uptick in residential builds, but to a lesser average value in the December 2020 quarter.

Private sector house commencements over the December 2020 quarter rose 26.6% compared to the September 2020 quarter, for a total of 33,761 private sector houses commencing.

This is a rise of more than a third compared to 2019's December quarter.

However, residential build value was $15.4 billion, only 2.6% up on the September quarter, and 1.7% down in value compared to the December 2019 quarter. 

Alterations amounted to just over $2.5 billion, up 3.1% on the quarter, and up 9.8% on the year. 

Mr Ugarte outlined some time-proof tips to heighten chances of a good return on renovation investment, including: studying the sold prices in the area, research planned and existing infrastructure in the area, creating a budget and sticking to it, and being realistic on how much growth is possible.

"Keep in mind that if you are planning on renovating, you're going to want to make a minimum of 20 to 25% uplift on your manufactured growth strategy," Mr Ugarte said.

“Like any form of investment, a renovation should be about making a profit – not just breaking even, or worse, losing money – and by carrying out this requisite research you’re best placed to ensure you’re not left short-changed once it’s done,” he said.

Building a home? Check out this handful of low-rate construction loans currently on the market.

Update resultsUpdate
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkCompare
6.14% p.a.
6.20% p.a.
$2,047
Interest-only
Variable
$0
$835
70%
6.43% p.a.
6.68% p.a.
$2,143
Interest-only
Variable
$0
$530
90%
  • Interest Only during construction
  • No monthly, annual or ongoing fees
  • Get Australia’s lowest rate construction loan when you go green
6.43% p.a.
6.68% p.a.
$2,143
Interest-only
Variable
$0
$530
90%
6.45% p.a.
6.20% p.a.
$2,515
Principal & Interest
Variable
$0
$1,520
60%
6.74% p.a.
6.42% p.a.
$2,247
Interest-only
Variable
$0
$600
90%
6.92% p.a.
6.95% p.a.
$2,307
Interest-only
Variable
$0
$300
80%
6.94% p.a.
7.19% p.a.
$2,313
Interest-only
Variable
$0
$530
80%
7.54% p.a.
7.45% p.a.
$2,513
Interest-only
Variable
$0
$500
80%
7.81% p.a.
7.84% p.a.
$2,882
Principal & Interest
Variable
$0
$600
69.99%
8.29% p.a.
8.62% p.a.
$3,016
Principal & Interest
Variable
$0
$0
80%
8.56% p.a.
8.58% p.a.
$2,853
Interest-only
Variable
$0
$600
69.99%
8.68% p.a.
8.75% p.a.
$2,893
Interest-only
Variable
$0
$800
95%
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of . View disclaimer.

Photo by Chastity Cortijo on Unsplash





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