1. Draft a budget

A budget is one of the most important blueprints your renovation can have. Setting a budget upfront will show what you can realistically afford to achieve with the funds you have.

Remember to allow a slush fund for unexpected extras like unforeseen price hikes in materials or delays due to bad weather.

2. Avoid the risk of overcapitalising

Overcapitalising refers to the situation where your renovations cost more than the value they add 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 it could also mean an inferior end result. 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

The wealth of renovating reality shows hitting the small screen often gloss over one major aspect of renovating - the need to secure council approval. Contact your council to check if you need a development approval (DA) for your project. Even seemingly minor jobs may need formal approval.

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:

The key is to plan ahead and talk to a Citibank Mortgage Specialist about the best option for your needs.