Renovating Before Selling vs After Buying: An Australian Property Guide

Whether you are preparing a property to sell or planning to renovate after buying, understanding the return on investment, common costs, and potential pitfalls of renovation is essential. Renovating to sell can significantly boost your sale price — but only if you do the right renovations. Renovating after buying can turn an undervalued property into your dream home — but you need to budget for it properly and avoid overcapitalisation.

This guide covers both sides of the equation: what to renovate before selling to maximise your return, and what to plan for when buying a property with renovation potential.

Renovating to Sell: Maximising Your Return

Not all renovations deliver the same return on investment (ROI). The key is to spend strategically on improvements that buyers value most, while avoiding expensive projects that will not be reflected in the sale price.

High-ROI Renovations

The following renovations consistently deliver the best returns when selling in the Australian market:

• Kitchen refresh (cosmetic): A cosmetic kitchen update — new cabinet doors or repainting, new handles, updated benchtops, a modern splashback, and new tapware — can return 3-5 times the cost. Budget: $5,000-$15,000 for a cosmetic refresh. A full kitchen renovation ($25,000-$50,000+) has a lower ROI unless the existing kitchen is severely outdated.
• Bathroom refresh: Like kitchens, cosmetic bathroom updates (new vanity, mirror, tapware, fresh paint, re-grouting, new shower screen) deliver strong returns. Budget: $3,000-$10,000 for cosmetic work. Full bathroom renovations ($15,000-$30,000+) are worthwhile only for seriously dated or damaged bathrooms.
• Paint (interior and exterior): Fresh paint is the single highest-ROI renovation. A neutral, modern colour scheme throughout the interior costs $5,000-$15,000 for a typical house and can add $20,000-$50,000+ to the sale price by making the property feel clean, modern, and move-in ready.
• Flooring: Replacing worn carpet with timber-look flooring or polishing existing hardwood floors makes a dramatic visual impact. Budget: $3,000-$10,000 depending on the area.
• Street appeal (landscaping and facade): First impressions matter enormously. Tidy the garden, repaint the front fence and front door, add some plants, clean the driveway, and update exterior lighting. Budget: $2,000-$8,000. ROI is excellent because buyers form their opinion within seconds of arriving.
• Declutter and styling: While not technically a renovation, professional styling (staging) can add 5-10% to the sale price. Budget: $3,000-$8,000 for a 4-6 week styling period.

Lower-ROI Renovations

Some renovations, while they improve the property, typically do not deliver a strong return when selling:

• Swimming pools: Cost $30,000-$80,000+ to install but add only $10,000-$30,000 to the sale price in most markets. Many buyers view pools as a maintenance burden.
• High-end finishes in a modest area: Installing marble benchtops and designer fittings in a suburb where the median price is $600,000 will not be reflected in the sale price. Renovate to the level of the market.
• Structural extensions: Adding rooms or extending the floor plan ($100,000-$300,000+) rarely delivers a dollar-for-dollar return unless the property is significantly undersized for its location.
• Highly personalised features: Bold colours, niche design choices, or unusual layouts may appeal to you but can alienate potential buyers.

For guidance on pricing your property after renovations, see our property valuation guide.

Renovating After Buying: Planning and Budgeting

Buying a property that needs work can be a smart strategy — you often pay less upfront and can add value through renovation. But you need to plan carefully.

Budget for Renovations in Your Purchase

Before making an offer on a renovation project, get realistic cost estimates for the work required. Factor renovation costs into your total budget — not as an afterthought. If the property costs $800,000 and needs $100,000 in renovations, your total commitment is $900,000 plus purchase costs. Make sure you can finance the full amount.

Check Council Approvals

Before buying a property to renovate, understand what approvals you will need:

• Complying development: Minor renovations that meet specific criteria (size, setbacks, zone) can be approved through a fast-tracked complying development certificate (CDC) in many states.
• Development application (DA): Larger renovations, extensions, or changes to the building envelope typically require a DA to the local council, which takes 4-12 weeks (or longer) and may attract neighbour objections.
• Heritage approvals: Properties with heritage overlays require additional approvals that can significantly limit what you can do. Check before you buy.
• Unapproved existing work: Check whether previous owners did any work without approval. You may inherit the liability, and council can require you to rectify or remove unapproved structures.

Structural vs Cosmetic Priorities

When planning a post-purchase renovation, prioritise in this order:

1. Safety and compliance: Electrical rewiring, asbestos removal, structural repairs, plumbing upgrades. These are non-negotiable.
2. Waterproofing and weatherproofing: Fix the roof, gutters, downpipes, and any water ingress issues before cosmetic work. Water damage will destroy cosmetic renovations.
3. Structural improvements: If you are extending or reconfiguring the layout, do this before cosmetic finishes.
4. Kitchen and bathrooms: These are the highest-value rooms. Renovate them to a standard that suits your lifestyle and the property's market position.
5. Cosmetic finishes: Paint, flooring, lighting, and fittings come last — they are the finishing touches that tie everything together.

For more on building from scratch or major renovations, see our guide to building a new home.

Cost Estimates for Common Renovations

The following are typical costs for common renovations in Australia as of 2026. Actual costs vary by location, property size, scope, and the tradespeople you engage:

• Full kitchen renovation: $25,000-$60,000+
• Full bathroom renovation: $15,000-$35,000+
• Interior painting (3-bed house): $5,000-$15,000
• New flooring (timber/hybrid, 100 sqm): $5,000-$15,000 installed
• Roof replacement: $10,000-$30,000+
• Electrical rewiring (full house): $8,000-$20,000
• Landscaping (front and back): $5,000-$30,000+
• Ground-floor extension (per sqm): $2,500-$5,000+ per square metre
• Granny flat (60 sqm): $100,000-$180,000

Always get at least three quotes for any significant work, and include a 10-20% contingency in your budget for unexpected issues (which are almost guaranteed in renovation projects).

Financing Renovations

How you fund your renovation depends on your situation:

• Construction loan: If you are buying and renovating simultaneously, a construction loan releases funds in stages as work is completed. This is common for major renovations or knockdown-rebuilds.
• Home equity: If you already own the property (or have sufficient equity after purchase), you can draw on your home equity through a line of credit or by increasing your mortgage. This typically offers the lowest interest rate.
• Personal loan: For smaller renovations ($10,000-$50,000), a personal loan is an option, though interest rates are higher than mortgage rates.
• Savings: Paying cash avoids interest costs entirely and is the best option for smaller cosmetic renovations if you have the funds available.
• Renovation-specific mortgage products: Some lenders offer mortgages that include a renovation component, lending against the post-renovation value of the property.

The Overcapitalisation Trap

Overcapitalisation occurs when you spend more on renovations than the value they add to the property. This is the single biggest risk in property renovation. To avoid it:

• Know your ceiling: Research comparable sales in the area to understand the maximum price the market will pay for a property like yours, regardless of how much you spend on renovations. This is your price ceiling.
• Renovate for the market, not for yourself: If you are selling, make choices that appeal to the broadest range of buyers. If you are staying long-term, personal preferences matter more — but be aware of the financial impact.
• Do the maths: If the property is worth $700,000 unrenovated and comparable renovated properties sell for $850,000, you should not spend more than $100,000-$120,000 on renovations (leaving room for a reasonable margin).
• Get a pre-renovation valuation: A qualified valuer can estimate the post-renovation value based on your plans, helping you decide whether the renovation is financially worthwhile.

When NOT to Renovate

Sometimes the best decision is to leave the property as it is:

• When the market is hot: In a strong seller's market, properties sell quickly regardless of condition. The renovation spend may not be recovered.
• When you are near the price ceiling: If your property is already close to the highest comparable sales in the area, renovations will not push the price higher.
• When the renovation timeline is too long: If you need to sell quickly, a major renovation will delay the sale and add holding costs.
• When costs exceed the uplift: If three builders quote $80,000 for a renovation that will add $50,000 in value, the numbers do not work.

Related Resources

• Selling Property Guide — Complete guide to selling your property in Australia
• Building a New Home Guide — Planning, approvals, and construction process
• Property Valuation Guide — Understanding how your property is valued