Renovations can add value or create a better place to live—but they often blow out in cost and time. Here are the main ways renos go wrong and how to reduce the risk.
Underestimating cost and time
The biggest trap is budgeting too low. Quotes often exclude surprises (e.g. asbestos, faulty wiring). Add a buffer of 15–20% for the unexpected, and assume the job will take longer than promised. Plan your finances so you can still pay the mortgage and bills if the reno drags on.
Doing too much at once
Tackling the whole house in one go can strain your cashflow and leave you with nowhere to live comfortably. Phasing renos—one room or stage at a time—spreads the cost and lets you learn from the first round before committing to more.
Overcapitalising
Overcapitalising means spending more on the reno than you’ll get back when you sell. In some areas, a basic refresh is enough; a full luxury fit-out may not add the same value. Check comparable sales and talk to local agents before you overspend.
Skipping contracts and permits
Handshake deals and “cash jobs” can leave you with no comeback if work is shoddy or incomplete. Get a written contract, define scope and payment stages, and ensure permits are in place where required. Unapproved work can cause problems when you sell.
Not planning for holding costs
While the reno runs, you still have the loan, rates, and possibly reduced or no rent if it’s an investment. Make sure you can cover those costs for the full duration—and then some—so you’re not forced to sell or borrow more in a rush.