INSIGHT

5 tips for renovation success

If you’re ever stuck for a something to say, weave renovating into the conversation and you’ll be set for hours. Everyone has a story to share or advice to give – whether you want it or not.

Exciting as it is to discuss your grand designs, try not to get caught up in choosing your fittings before you have your renovation funding sorted.

Check out our top five renovation tips to ensure a great job that comes in on time, on budget and adds value to your home and lifestyle.

1. Draft a budget

A budget is one of the most important blueprints your renovation can have. Set a budget upfront so you know what you can realistically afford.

Remember to allow for unexpected extras like unforeseen price hikes in materials or delays due to bad weather. And if you need to move out while you renovate, don’t forget the extra rental and storage costs.

2. Avoid the risk of overcapitalising

Overcapitalising is when your renovations cost more than the value they will add to your home. Think carefully before you go spending $50,000 on an extravagant bar area that will only add $10,000 value to your home.

It may not be a problem if you plan to live in your home for many years but it's a fiscal disaster if you're likely to sell up and move in the short term. If in doubt, talk to a local real estate agent to check if your project will result in a decent increase to your home's value.

3. Rethink DIY

Sure, doing some of the work yourself can save on tradie's costs, but only if you really know what you’re doing. Otherwise, it could end up costing much more in the long run.

Bear in mind too, building can be dangerous work, so only take on what you know you can safely finish to a high standard - and use licensed tradespeople for the rest.

4. Don't forget the council

Reality shows gloss over one major aspect of renovating because the potentially tedious process of securing council approval doesn’t make good TV. Real life doesn’t work that way. Contact your council to check if you need a development approval (DA) for your project. Even seemingly minor jobs may need formal approval.

Exciting as it is to discuss your grand designs, try not to get caught up in choosing your fittings before you have your renovation funding sorted.

5. Plan your funding

Running out of cash midway through a renovation can leave you financially skewered, or lumbered with an incomplete project.

There are a number of ways you can fund your renovations, depending on the size of the project and your budget: Use the funds saved in your Offset Savings Account. It's a simple and easy to access those funds - just log in to Citibank Online and transfer the funds, or use your Citibank Visa Debit Card.

Redraw your existing home loan

This is also fast and easy. If you have an existing variable rate home loan and you've made additional repayments, you may be able to redraw those funds to use for your renovation. Simply sign in to Citibank Online and redraw the funds.

Use the equity in your home

If the equity in your property has increased, it might be worth refinancing to access additional funds. By increasing your home loan amount, you can potentially take advantage of a lower interest rate.

The key is to plan ahead. Talk to a Citibank Mortgage Specialist about the best option for your needs, and remember to allow a buffer in your budget – just in case the build doesn’t go according to plan.

Important Information:

Any advice is general advice only. It was prepared without taking into account your objectives, financial situation, or needs. You should consider if this advice is appropriate for your situation. We recommend you read the Product Disclosure Statement (PDS) or Terms and Conditions, available online or via a Citibank branch, in addition to seeking independent legal, financial and taxation advice on your personal circumstances before acting on the information contained in this material.

This material is for general information only. All opinions are subject to change without notice. This material is taken from sources which are believed to be accurate, however Citibank accepts no liability of any kind to any person who relies on the information in it.

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