1. Set a Realistic Budget (and Add a Buffer)
Work out what you can truly afford and add 10–20% for unexpected costs—renovations nearly always uncover surprises. Best case you have funds left over at the end which you can put back into your loan anyway.
2. Get Multiple Quotes
Compare at least three quotes from licensed trades and builders. It’s not just about the cheapest price—look at experience, inclusions, and timelines. Selecting the wrong tradie will inevitably blow out your budget.
3. Decide How You’ll Fund It
Consider whether a redraw, personal loan, construction loan, or line of credit suits your situation. Each has different interest rates, repayment terms, and risks.
4. Understand the Impact on Your Property Value
Research your suburb’s property market to ensure the work adds value and doesn’t overcapitalise.
5. Check Loan Conditions Before You Commit
If you’re using finance, ensure your lender allows progress payments or lump-sum withdrawals to suit the building schedule.
6. Lock in Material Prices Where Possible
Material costs can fluctuate from the start of your project to the end. Secure quotes and lock in prices early to avoid budget blowouts from supply change increases along the way.
7. Factor in Living Arrangements
If you’ll need temporary accommodation during part or all of the works, include rent or relocation costs in your budget. It’s an additional overhead some renovators overlook.
8. Keep Cash Flow in Mind
Renovations can take months—make sure your regular bills and lifestyle expenses are still covered while work is underway. Poor weather, material and trade supply may extend your initial timelines so plan for additional time.
At Zenith Finance we have assisted many clients through financing their renovations. Reach out if you have questions or would like to view the current loan options available.