Renovating your home can be a great way to increase its value, make it more energy efficient, or simply bring its look and feel into the 21st century. Renovations can bring can a dream you have had for a long time but, as anyone who’s embarked on a reno will tell you, they can be a nightmare to plan.
Along with the cost (which has a tendency to blow out) and the time involved (which can easily run over schedule), you might come up against several other nasty surprises. To keep these to a minimum, try to avoid these mistakes.
Not taking your time in sourcing contractors
You want the people working on your home to be skilled, qualified and reliable, so avoid rushing to hire the first tradesperson available, especially if the project isn’t urgent.
If you’re looking online, make sure to seek out examples of past work as well as reviews across multiple platforms. Don’t forget to do your due diligence either – having the appropriate licences and registrations are a must.
It’s also worth asking your family and friends for recommendations. This way you can inspect their handiwork up close (instead of relying on photos). Just keep in mind that while personal referrals might carry more weight, it’s still a good idea to research the contractor yourself.
Not planning ahead in case of cost blowouts
Renovations have a knack for going over budget, so it’s worth having a contingency fund of around 10% to 20% to help cover any unforeseen costs.
It can save a lot of stress if problems come up, like old plumbing or wiring, or if you decide to make changes during the build.
Forgetting to budget for alternative accommodation
Depending on the size of your renovation, you may need to find somewhere else to stay while the work is underway.
If you’re lucky, you might be able to stay with family or friends. Otherwise, short-term rentals or even house-sitting opportunities could be good temporary options.
In some cases, you may be able to remain at home for part or all of the renovation, especially if the work is confined to certain areas. As long as your home isn’t a full construction zone and you still have access to power, running water, and a working bathroom, staying put can be easier on both your family and your budget.
Over-capitalising on your property
If you’re renovating an investment property or a home you plan to sell in the near future, be careful not to overcapitalise.
Overcapitalising happens when you spend more on improvements than you’re likely to recover when you sell. For example, you might spend $100,000 on renovations that only add $50,000 to the value of your home.
A clear budget is your best protection. Research recent sales of similar homes in your area to understand the local price ceiling, and try to keep your total spend within what buyers are willing to pay.
Even if you’re renovating to stay rather than sell, it’s worth keeping future resale in mind. Bold design choices or unusual layouts can make your home harder to sell later on if they don’t appeal to local buyers.
Not being on the same page with your family
Surprise costs, unexpected delays, and decision fatigue can all whittle away at your enthusiasm for the project, but you don’t want it to drive a wedge between you and your partner too. To keep tensions from flaring up, make sure you and your partner agree before the project is underway.
Start by having an open and honest conversation about what you both want from the renovation. Are you fixing up your forever home? Do you value functionality over style? Some compromise might be necessary, but it can be worth it to ensure you both feel heard.
In the end, a successful renovation requires careful planning, clear communication, and a realistic budget. With the right preparation, you’ll hopefully be able to avoid the unnecessary hassle and achieve the results you dreamed of.
Source: This article was originally published on Advisely with the title “5 traps to avoid when renovating your home” on 12 October 2025.
Planning your next renovation?
Renovations are one of the biggest investments many households make. A financial adviser can help you plan strategically, balance your budget with your goals, and ensure your project fits within your broader wealth plan.
Contact us to discuss how we can help you plan your renovation with confidence.
This information provided in this article is general advice only and has been prepared without taking into account your own objectives, financial situation or needs. Before making a financial decision based on this advice, you must consider whether it is appropriate in light of your own needs, objectives, and financial circumstances, and where relevant, obtain personal financial, taxation or legal advice. Where a financial product has been mentioned, you should obtain and read a copy of the Product Disclosure Statement (PDS) prior to making any decisions about whether to acquire a product.