When you're buying a home as a couple, one question can turn it into a pretty spirited debate: do we find a house that’s move-in ready or go for a fixer-upper that?
One of you might be dreaming of timber floors, French doors and a DIY makeover montage. The other wants to move in, unpack, and put the kettle on.
It's a big decision, and the answer isn't always obvious.
This guide breaks it all down: the pros, the cons, the hidden costs, and how a renovation loan could give you more choice (and breathing room) from day one.
Weighing up the big decision: buy a new house or old house?
Buying a newly built or freshly renovated home makes life easier for some couples. There is less risk and hassle, and you can settle in straight away. But if you're up for the challenge, choosing a fixer-upper could unlock better locations, bigger blocks, and the chance to make a place your own.
| Why it might suit you | What to be ready for |
|---|---|---|
Move-in ready: low stress, high convenience | Fast to settle: Skip reno plans, council paperwork and tradie schedules. Modern layouts: Designed for today, with open living, clean lines, and updated finishes. Less effort upfront: No sanding, no tiling, no Bunnings marathons. Great for busy lives: Ideal for those with full calendars or a baby on the way. | Higher upfront cost: You’re paying for someone else’s work. Limited potential to add value: Less room to boost equity unless you hold long-term. Harder to personalise: Re-renovating a finished home can be costly and wasteful. |
Reno-ready: more potential, more to manage | Lower sticker price: Older homes often come in below median suburb prices. Add value your way: Renovations can increase equity and suit your lifestyle. Access better areas: Renovator homes may be your ticket into sought-after suburbs. | More effort and energy: Renos always take longer and cost more than you think. Surprise costs: Hidden structural issues, rewiring, and approvals can derail your plans. Disruption: You might live in a work zone for weeks or months. Overcapitalisation: Spending more than the home can return if you sell too soon. |
So, who’s doing the work?
Approach | Pros | Cons |
|---|---|---|
DIY renovations | Lower cost, personal satisfaction | Time-consuming, risk of costly mistakes |
Hiring tradies | Faster, higher quality, regulation-compliant | More expensive, less personal control |
Hybrid | Do what you can, outsource the rest | Still requires good project management |
Smart couples know their limits. Paint and landscaping? Sure. Plumbing and wiring? Call the pros.
Renovation loans to upgrade your options
Think you have to save for years to afford a reno? Not always. A renovation loan can let you roll home upgrades into your mortgage so that you can start sooner.
But what is a renovation loan?
It lets you borrow extra funds in addition to your home loan to pay for planned renovations. The money is usually tied to approved quotes and released in stages after settlement.
So, why do smart couples love them?
Start sooner: No need to delay upgrades or dip into savings.
Simpler finances: One loan, one repayment schedule.
Equity boost: Add value early.
Make it yours: Tailor your home to your lifestyle straight away.
Your Aussie Broker can walk you through how it works, from quotes and approvals to lender options and drawdowns.
First-home buyers: Old house, fresh opportunity
It's no secret the market feels tight for first-home buyers. But that's exactly where older homes can give you an edge if you know what to look for. Here's how smart couples are making it work:
Buying a home that needs a little love. Older properties often come with a lower price tag, making that first step onto the ladder feel more doable.
Using a renovation loan to boost value. Rather than saving again post-settlement, many buyers are bundling renovation costs into their mortgage from the start so they can update sooner without stretching their budget.
Focusing on structure, not surface. A solid house with a dodgy carpet? That's still a win. The real value lies in the bones, not the benchtops.
Aussie insight: Your Broker can help you find a property with potential and a renovation loan to match. That way, you're not just getting into the market; you're getting ahead in it.
Busy professionals: What's your time worth?
If your days are packed with work calls, school drop-offs, or everything in between, a full-blown home renovation might not best use your time or energy. Even if the result looks great, the journey can be challenging if you're already juggling a lot. Here's what often gets missed in the fine print:
Reno = project management. From chasing tradies to chasing deliveries, it's a job in itself.
Delays can cost you twice. If your reno runs behind, you could be paying your mortgage and rent at the same time.
Tradie waitlists are real. Book late, and you might be waiting months just to get started.
Sometimes, spending more upfront on a finished home can save you financially and mentally.
What are the hidden costs that could stack up?
Taking time off work to manage issues on-site
Paying for last-minute accommodation
Emergency repairs or call-outs when timelines blow out
Delays in moving in or renting out your property
Aussie insight: If you're short on hours but big on stability, weighing up what a move-in-ready home can give you clarity, control, and less to worry about.
Thinking DIY? Here's what you'll want to know first
If your toolkit is always within reach and you've already bookmarked five Pinterest ideas, DIY home renovations might be your time to shine. But even the handiest couples can run into the kind of challenges that no YouTube video can fix.
For example, a couple buys a 1970s weatherboard, confident they can paint, re-floor and refresh the kitchen themselves. But once they get started, they hit a few unexpected speed bumps:
A dodgy extension needing urgent structural work
Old electrical wiring that doesn't meet today's standards
A bathroom layout change that suddenly triggers council approval
What started as a budget-friendly fix-up quickly turns into a compliance-heavy headache.
So, what are the DIY traps smart couples should watch out for?
Council approvals: Knock out a wall or reroute plumbing, and you'll likely need Development Approval (DA).
Owner-builder rules: You might need a permit and insurance for major works. Plus, you'll carry the legal responsibility if anything goes wrong.
Hidden structural issues: Think termite damage, water rot or uneven foundations. All costly, all common in older homes.
Licensing limits: In some states, even experienced DIYers can't legally do renos over a certain dollar value without bringing in the pros.
What should smart DIY couples do instead?
Do the bits you can. Painting, tiling, landscaping and flatpacks are all fair game.
Leave the rest to the experts. Use licensed tradies for anything structural, electrical, plumbing or waterproofing.
Use a renovation loan. A well-structured loan can help you bring in professional help where it counts, without blowing your budget.
Aussie insight: Renovating is about timing, compliance, and knowing when to call in the experts. If you're thinking of doing something DIY, we can help you secure the right finance to support your plans.
The hidden post-purchase costs couples miss
Renovating can look cheaper on paper, but that's before the walls come down.
Take Sam and Tash. They bought a cute 1960s fibro on a quiet street with plans to refresh the paint, update the floors and open up the kitchen. But once they got started, the surprises started stacking up:
Asbestos in the walls: Safe removal meant calling in specialists.
Old electrical wiring: Non-compliant and unsafe, it needed a full rewire.
Kitchen delays: Left them living with family for two months post-settlement.
Bathroom budget blowout: Plumbing reroutes and tile costs added up fast.
Suddenly, their budget-friendly reno didn't feel so friendly.
Even cosmetic fixes can turn up deeper issues. Here are the big ones to look out for:
Asbestos: Found in many homes built pre-1990. Licensed professionals must handle removal, and it's not cheap.
Electrical rewiring: Outdated wiring is common in older homes and often needs to be replaced to meet modern safety and insurance standards.
Temporary accommodation: If you can't live in the home while renos are happening, you might be paying rent and your mortgage.
Over-capitalising: Pouring $100K into a $500K property in a $520K suburb? That could leave you short in the long run.
The smart move? Plan for the surprises. No one wants to be caught off guard mid-reno. That's why experienced renovators build in a 10–20% buffer because unexpected costs aren't if, they're when.
Aussie insight: Before picking up a hammer, pick up a calculator. If you're looking at a property that needs love, chat with your Aussie Broker about a renovation loan, so you're not stretching your budget.
You might also be interested in: Tips for upgrading or renovating your home in 2025
Financing options for post-settlement renovations
Whether you're updating the bathroom or planning a full knock-through, how you finance your home renovation can make a big difference.
Here's a simple breakdown of two popular loan options and how they stack up.
| Unsecured renovation loan (personal loan) | Renovation loan (bundled with your mortgage) |
|---|---|---|
| These loans don't require your home as security, so they're ideal for smaller upgrades that won't break the bank. | This option allows you to roll renovation costs into your mortgage upfront when you buy or by refinancing later. |
Best for? | Cosmetic upgrades under $50k. Think paint jobs, new flooring, flatpack kitchens. | Bigger projects like structural changes, major extensions or kitchen/bathroom overhauls. |
Pros | Fast approval turnaround No need for home equity Flexible use of funds | Lower interest rates (home loan level) Renovation costs are added to your loan balance. Funds released in stages as work progresses |
Cons | Higher interest rates (typically 8–12% p.a.) Shorter loan terms (1–7 years) Higher monthly repayments | Requires lender approval and detailed quoting Progress payments need paperwork and planning. Can take longer to organise |
Let’s say you’re borrowing an additional $80,000 for a home renovation through your Aussie Broker:
Loan type | Loan term | Interest rate (Est.) | Monthly repayment* |
|---|---|---|---|
Unsecured loan | 7 years | 9.99% p.a. | ~$1,297/month |
30 years | 6.19% p.a. (variable) | ~$489/month |
When to use what?
Quick reno under $50k? A personal renovation loan could get the job done fast.
Major upgrades or structural work? Chat to an Aussie Broker about packaging a renovation loan into your mortgage before or after settlement.
Aussie insight: A renovation loan isn't just about fixing up your home; it can be a smart way to build equity from day one. We'll help you find the option that works for your goals, timeline and budget.
Know what works for you
Whether you're dreaming of instant comfort or long-term transformation, the right path is the one that suits your lifestyle, time, and goals. Ask yourselves:
Do we have the time and energy for a reno?
Can we handle the mess and stress?
Would a finished home give us peace of mind?
Could a renovation loan help us get the best of both worlds?
Let's figure it out together.
No matter where you land, Aussie can help you:
Calculate your budget with our borrowing power calculator.
Research the market with a free property report.
Explore your options with a chat with an Aussie Broker.
Buying smart means choosing what's right for you and backing that choice with expert support.