5 traps to avoid when renovating your home
Written and accurate as at: Oct 12, 2025 Current Stats & Facts
Renovating your home can be a great way to increase its value, make it more energy efficient, or simply bring its look and feel into the 21st century. But as anyone who’s embarked on a reno will tell you, they can be a nightmare to plan.
Along with the cost (which has a tendency to blow out) and the time involved (which can easily run over schedule), you might come up against a number of other nasty surprises. To keep these to a minimum, try to avoid these mistakes.
Not taking your time sourcing contractors
You want the people working on your home to be skilled, qualified and reliable, so avoid rushing to hire the first tradesperson available, especially if the project isn’t urgent.
If you’re looking online, make sure to seek out examples of past work as well as reviews across multiple platforms. Don’t forget to do your due diligence either – having the appropriate licences and registrations are a must.
It’s also worth asking your family and friends for recommendations. This way you can inspect their handiwork up close (instead of relying on photos). Just keep in mind that while personal referrals might carry more weight, it’s still a good idea to research the contractor yourself.
Not planning ahead in case of cost blowouts
Renovations have a knack for going over budget, so it’s worth having a contingency fund of around 10% to 20% to help cover any unforeseen costs.
This can take a lot of the stress out of the equation if your workers hit a snag (like discovering old plumbing or wiring that urgently needs replacing), or even if you change your mind about certain details mid-project and have to change course.
Forgetting to budget for alternative accommodation
Depending on the scale of your reno, you might need to find somewhere else to live while work is underway.
If you’re lucky you’ll be able to stay with parents (assuming good family dynamics), but if that’s not an option there might be short-term rentals or perhaps even house-sitting opportunities that might work for your family.
Of course, you might be able to stay put for all or part of the renovation if only certain areas are being worked on. So long as your home isn’t a rubble-filled construction site – and you’ll still have access to electricity, running water and a functional bathroom – this might be preferable for both your family and your wallet.
Over-capitalising on your property
If you’re renovating an investment property or a home you plan on selling in the short- to medium-term, make sure you don’t get carried away and wind up overcapitalising.
This is when you pay more on improving your property than you’ll be likely to recoup if you eventually sell it (for example, spending $100,000 on renovations only to find that they’ve added just $50,000 to the value of your home).
This is another occasion where budgeting can be your best defence. Start by researching the likely price ceiling for similar homes in your area, and try to keep your total spend in line with what future buyers might be willing to pay.
And even if you’re not renovating to attract tenants or sell immediately, try to keep the design and layout in mind. Anything too idiosyncratic, or that detracts from what people are drawn to in houses in your area, might make it difficult to sell down the track.
Not being on the same page with your family
Surprise costs, unexpected delays, and decision fatigue can all whittle away at your enthusiasm for the project, but you don’t want it to drive a wedge between you and your partner too. To keep tensions from flaring up, make sure you and your partner are on the same page before the project is underway.
Start by having an open and honest conversation about what you both want from the renovation. Are you fixing up your forever home? Do you value functionality over style? Some compromise might be necessary, but it can be worth it to ensure you both feel heard.
In the end, a successful renovation requires careful planning, clear communication, and a realistic budget. With the right preparation, you’ll hopefully be able to avoid the unnecessary hassle and achieve the results you dreamed of.
