Work out your real renovation budget
| Step | What to do |
|---|---|
| 1. Start with what you can afford | Cash you can set aside, plus any renovation loan you're comfortable repaying |
| 2. Take away furniture and appliances | Sofa, bed, dining set, fridge, washer, curtains and lights are usually not in the ID's quote |
| 3. Take away a buffer | Keep 10–15% aside for variation orders, surprises and price changes |
| 4. What's left is your renovation budget | This is the number to share with your ID |
Share your renovation budget with IDs, not your total funds. That keeps the buffer yours.
A worked example
This is an illustration, not a price guide. Use your own numbers.
| Amount | |
|---|---|
| Total you can spend | $80,000 |
| Furniture, appliances, curtains and lights | – $15,000 |
| Left for renovation plus buffer | $65,000 |
| Buffer (about 12% of the renovation budget) | – $7,000 |
| Renovation budget to share with IDs | $58,000 |
Costs homeowners forget
- Electrical works (often a separate quote)
- Variation orders: every “can add this?” adds up
- Concealed piping, which costs more than exposed piping
- Professional Engineer (PE) endorsement for hacking, often listed as “TBC”
- Permits, haulage and debris disposal
- Final cleaning
- Furniture, curtains, lighting and appliances
- Moving costs, and rent or a stay elsewhere if the project runs late
Needs vs wants
Fund first (needs)
- Safe wiring and enough power points
- Proper waterproofing in wet areas
- Storage you'll really use
- Good lighting where you cook and work
Add if budget allows (wants)
- Feature walls
- Cove lighting in every room
- Full-height everything
- Premium finishes
A useful test: “Would I still want this if it cost $2,000 more?”
Where to save, and where not to
Usually safe to save
- Decorative carpentry you can add later
- Feature walls and false ceilings
- Loose furniture (buy over time)
- Premium finishes in low-use rooms
Don't cut corners
- Waterproofing
- Electrical wiring and enough power points
- Plumbing
- Hard-to-change items: tiles, layout, built-in storage
Things hidden inside walls and floors are the most expensive to fix later.
Protect your budget when you pay
- Keep the deposit small. CaseTrust-accredited firms cap it at 20%.
- Pay in stages, only after each stage of work is done
- Get every variation order priced and signed before the work starts
- Keep the final payment until defects are fixed
Related: renovation quotation checklist and a safer payment schedule.
Get the free Before You Sign checklist: every check from our guides on 2 printable pages.Download PDF ↓