Buying a “fixer-upper” can be a smart way to enter a tightly held suburb or create a dream home. But renovation isn’t for the faint-hearted—it takes time, money, and a lot of planning. Whether you’re handy on the tools or planning to engage professionals, you need to go in with your eyes wide open.
1. Know the Scope—and the Cost
Every renovation project is different. A simple cosmetic update is one thing. But reconfiguring floor plans, replacing plumbing, or rewiring electrical systems can multiply the cost and complexity.
Before making an offer, you need a clear understanding of what the project entails. Will it involve structural changes? Are you planning to extend? Will you need development approval from council?
Renovating can be a smart way to enter a suburb you otherwise couldn’t afford—but only if the numbers stack up.
2. Be Clear on Your Why
Your renovation strategy depends on your goal.
Renovating to sell? Stick to cost-effective finishes that suit the local market. Your end resale price should drive every decision—don’t overcapitalise.
Renovating to live in? You might choose higher-end materials or finishes that suit your lifestyle. But remember—even dream homes have a budget ceiling. If you overextend, you may not recover the value later.
3. Costs vs Value: Do the Numbers Early
Renovation success depends on careful financial planning. Here’s a general guide:
Also account for:
Holding costs (e.g. mortgage interest during construction)
Temporary rent if you need to move out
Stamp duty and transaction costs
Project management stress and delays—these are real and can impact your wellbeing
4. Avoid Hidden Headaches
Major renovation risks include:
Termite or pest damage
Asbestos (especially in homes built pre-1990)
Non-compliant wiring or plumbing
Water damage or poor drainage
Structural issues in footings or rooflines
Tip: Always commission a pest and building inspection, and get advice from a licensed builder or architect before committing.
5. Heritage & Conservation Zones: Know the Rules
In suburbs like Paddington, Woollahra, or Randwick, many homes fall under heritage conservation controls. These restrict what you can alter—especially facades, windows, rooflines, and materials.
Contact your local council’s planning department to understand:
Ignoring these rules can be costly—not just in time, but in legal and compliance headaches.
6. Renovating an Apartment: Even More Rules
Apartments come with their own renovation challenges. Before buying, check:
Strata by-laws – Are you allowed to change flooring, plumbing, or external windows?
Sinking fund health – A low or underfunded sinking fund could mean future levies or building issues
Plumbing and services – In many buildings, services like water and gas may run through other units, making relocation difficult or impossible
Get a strata report and consult a builder familiar with apartment renovations. In some cases, what seems like a simple upgrade may be unworkable under strata rules.
Final Word: Be Cautious, Be Informed
Renovating can be a rewarding pathway to wealth creation—or the lifestyle you’ve always wanted. But it’s not a shortcut, and it’s rarely stress-free.
Before buying a property to renovate, get advice from professionals who understand:
If done right, renovation can transform your property journey. Just make sure you go in with a plan—and a buffer.
