February 15, 2026
Budgeting for a renovation can feel overwhelming—costs vary widely depending on scope, location, and finishes. A well-planned budget helps you prioritise, make informed decisions, and avoid the stress of unexpected overruns. Here's a practical guide to budgeting for your Canberra or Sydney renovation.
Establish Your Total Budget
Start by determining how much you can realistically spend. Consider your savings, any financing, and how much you're comfortable investing in your property. As a rule of thumb, avoid spending more than 10–15% of your home's value on a single renovation unless you're planning a significant transformation that will substantially increase resale value.
Get a sense of market rates by obtaining quotes from licensed builders. Inhaus Living provides detailed, transparent quotes that include labour, materials, project management, and applicable fees. Understanding the true cost of quality work helps you set realistic expectations from the outset.
Allocate Funds by Category
Break your budget into categories. Labour and project management typically account for 40–50% of a renovation. Materials—tiles, cabinetry, fixtures, appliances—often represent 30–40%. The remainder covers permits, design fees, contingency, and unexpected costs.
- Labour and project management: Builder fees, trades, and coordination
- Materials: Finishes, fixtures, appliances, and fittings
- Permits and approvals: Council, strata, and certification
- Design and planning: Architect or designer fees if applicable
- Contingency: Reserve for unforeseen issues
Include a Contingency Reserve
Unexpected issues are common in renovations—hidden water damage, asbestos, structural surprises, or permit complications. A contingency of 10–15% of your total budget is recommended. For older buildings or apartments with unknown history, consider 15–20%.
If you don't use the contingency, you can apply it to upgrades or save it. If you do need it, you'll be grateful it was there. Never allocate your entire budget without a buffer; it's one of the most important budgeting rules in renovation.
Prioritise Must-Haves vs. Nice-to-Haves
Create a list of non-negotiable items—safety, functionality, and core improvements—and a separate list of desirable upgrades. If costs escalate, you can defer or eliminate nice-to-haves without compromising the integrity of the project.
For example, a new bathroom might be essential, but a heated towel rail could be added later. A kitchen renovation might require new cabinetry and benchtops, while a premium splashback could be a future upgrade. Prioritisation gives you flexibility when trade-offs are necessary.
Understand Apartment-Specific Costs
Apartment renovations in Canberra and Sydney often incur additional costs. Strata approvals may require fees, insurance certificates, and sometimes contributions to common property. Access restrictions—using lifts, loading docks, or restricted hours—can extend timelines and labour costs.
Older buildings may have asbestos, which requires licensed removal. Noise restrictions can limit work hours. Factor these into your budget and timeline. A builder experienced in Class 2 buildings, like Inhaus Living, can help you anticipate and plan for these variables.
Avoid Common Budget Pitfalls
Underestimating labour costs, choosing the cheapest quote without comparing scope, and changing plans mid-project are common causes of budget blowouts. Get detailed, itemised quotes. Understand what's included and what isn't. Make decisions before work begins where possible.
At Inhaus Living, we provide fixed-price contracts where appropriate, so you know exactly what you're paying. We've been delivering renovations across Canberra and Sydney since 2001, and we're committed to transparency and quality. Contact us for a free consultation and a clear, comprehensive quote for your project.