Having a spruced-up home feels great. And it can also boost your home’s value. But, as exciting as the prospect of rolling up your sleeves and getting on with a reno can be, there are certainly pitfalls to avoid.
New year, new resolution, new you, new reno?
Renovating is an exciting time. It might be to add value to your home but it might also be for living purposes and practicality reasons.
We’ve all heard nightmare stories of cowboy tradies turning up on their horses, budget blowouts and permit nightmares, not to mention weather impacting the timeline of your renovation.
So here we have listed some tips to prepare you for the reno or building project
1. Prepare and plan ahead
As Benjamin Franklin said, “if you fail to plan you’re planning to fail”. This is so true when it comes to a building project. Leaving tasks to chance can leave you seriously out of pocket.
Have a to do list plus a timeline, these are factors you can discuss with your builder.
Understanding council regulations and restrictions is extremely important and make sure you have the correct council approvals in place can prevent a pleasure project in to a nightmare scenario,
Before proceeding you should have you finances approved and once approved you can have the chosen builder organise a contract. The contract should have a scope of works and a list of stages for the release of funds either by yourself or paid for once approved by the bank.
2. Research builders or tradies
It’s a no-brainer that you want to pick a good builder that suits your project well but that you also feel comfortable with.
The temptation to hire that cheap builder is common but in many circumstances why are they cheap as chips compared to your other quotes? Are they cutting corners? Are they going to leave you in a pickle. Cheapest is not always the best option on such an important project.
But it’s important to hire licenced tradies. Most state fair trading websites offer a free online service for you to check. Plus if you are organising finance for the build then the lender will normally want to see all the builders insurances anyway.
Not doing so runs the risk of fines, shoddy work and costly re-dos or leave you hanging in the wind.. And the work of an unlicenced tradie most likely won’t be covered by insurance and the last thing you want is having to get a new builder in to fix the botch ups of the previous builder.
Also, be sure to check out reviews or can you see work they have completed? Do you have friends that recommend anyone?
3. Budget and a buffer set before you start
Having a budget is an important step. You need to know what the build will cost and that you can finance it either through a construction loan or from your own funds.
It’s also wise to have a 10% buffer up your sleeve as its extremely rare that building costs stay on their original price point.
Unexpected or blow out costs can really add up – just ask anyone who has completed a reno and its rare they run to plan. You don’t want to be left needing money to finalise your dream home and not being able to move into due to lack of funds.
Also, having a broker like us will help ease some of the planning and stress as we can assist with the release of funds at each progress payment stage. We can also start you off with the best lender for your situation that is going to release those payments quickly. You do not want a builder on your back as the bank have taken a week or more to make a payment to them as that can create a bad relationship with the builder as he needs funds to pay his workforce or pay for stock and materials.
We’ll help you explore your financing options, and picking the right lender for you. For a blog post on how construction loans work click here
Not only can we negotiate rates with the banks we will pick a lender that specialises in construction or renovation finance.
4. Be flexible on options
To get a reno done, sometime you have to bend to finalise the project.
It’s not unheard of to uncover issues during a reno – such as water dame or structural issues and they need to be taken care of. Although not in the original plans you don’t want to be papering over issues and they come back to haunt you later.
The building industry is also facing supply chain disruption and these are knock on effects from Covid, from the Ukraine war and other factors.
As a result, you might be waiting on particular stock. Are you able to change that item out for a similar one that is in stock?
But by being flexible – it enables you to move forward and finalise your project instead of waiting on waiting for that original item.
Get in touch
We know a thing or two about financing a reno, click here for another blog post on construction finance
Our team can find the perfect solution for you and the right lender for your own individual needs.
So if you’d like to find out more, get in touch today. We’re ready to help make your 2025 reno dreams a reality.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.
Amended by Craig McDonald 07/06/2025
