Top 10 renovations that add the most value to your home

Thinking about selling, renting out, or just creating a home that works better for the long haul? The right renovations can do more than just transform your space: they can drastically increase your home’s value, boost buyer appeal, and even unlock equity to fund your next move.

So, what should renovators focus on in 2025?

Property prices are shifting across the country. Some markets are surging, others are slowing. But one thing holds steady: well-thought-out upgrades still deliver strong returns.

You have to think beyond a slap of fresh paint. Strategic renovations can:

• Help your home stand out to buyers and renters

• Increase your market valuation

• Unlock equity to fund future upgrades or investments.

Today’s buyers, especially first-home buyers, Millennials and Gen Z, are looking for homes that reflect their lifestyle and values. Sustainability is a major drawcard, with energy-efficient appliances, recycled materials and water-saving fixtures topping many wish lists.

Smart home technology is also in demand, offering added comfort, convenience and security with features like automated lighting, climate control and keyless entry. And design still matters - buyers want natural light, thoughtful layouts, and finishes that feel modern, functional and move-in ready.

Whether you’re looking to sell, rent or simply future-proof your space, we’ve rounded up the most popular renovations Aussies are embracing right now, plus smart ways to finance them without overstretching your budget.

How to fund your renovation in Australia

Let's be real. Even small upgrades can add up. But with the right advice, funding your renovation doesn't need to be hard or stressful. At Aussie, we help homeowners explore options like:

Refinance your home loan and unlock equity.

If your property's value has increased, chances are your equity has, too. Refinancing means updating your current loan and accessing the value you already own. But why does refinancing work?

• Fund big upgrades like kitchens, bathrooms, or extensions.

• Lock in a lower interest rate at the same time.

• Spread repayments over the life of your home loan, making it manageable.

Aussie insight: The Aussie App is a great place to start. It allows you to check your current equity and borrowing power.

Loan options: Match your loan to your reno

Many people come to us after they've booked in the tradies. But the earlier you chat with an Aussie Broker, the better we can help you:

• Set a smart budget from the beginning.

• Choose the right loan structure for you.

• Avoid common traps like over-capitalising or underestimating costs.

The best part? Our service is free^. When you choose a loan, we're paid by the lender, not by you.

The top 10 renovations that add the most value in 2025

Kitchen renovations: The highest return on investment upgrade

If you're only going to renovate one part of your home, make it the kitchen.

The kitchen has gone from being purely functional to being the heart of the home. Open layouts, quality finishes, and smart functionality top the wishlist.

Here's what's trending:

• Open-plan layouts with island benches that double as prep space and breakfast bars.

• Stone or engineered quartz benchtops: Durable, stylish and timeless.

• Matte black or brushed brass tapware and handles for that sleek, designer finish.

• Integrated appliances like dishwashers and wall ovens that offer a high-end feel without overdoing it.

Sustainability isn't just a nice bonus anymore; it's a selling point, especially with younger buyers. Simple swaps with big impact:

• Induction cooktops: Energy-efficient and safe for families.

• Smart fridges that manage groceries and reduce energy use.

• LED task lighting for bright, focused light that uses less power.

It's not about a full eco-fitout. Even small upgrades can help you stand out in a competitive market.

How to fund your kitchen renovation

If you've owned your property for a while, chances are you've built up equity, which could be your renovation's ideal funding source. With Aussie, you can:

• Top up your existing home loan to fund your kitchen upgrade.

• Compare loan options from over 25+* lenders to find a great deal.

• Structure your repayments to suit your budget and timeline.

Bathroom makeovers: Modern, sustainable, and functional

If kitchens are the heart of the home, bathrooms are the unsung heroes. In 2025, buyers are looking for bathrooms that feel more like day spas: calm, clean and cleverly designed.

Today's bathrooms are all about simplicity, comfort and style. Top bathroom upgrades in 2025:

• Walk-in showers with frameless glass for a luxe, open feel.

• Floating vanities that make the space feel bigger and less cluttered.

• Matte black fixtures for a bold, modern edge that suits various styles.

Selling tip: A clean, updated bathroom helps your home shine in real estate photos and can easily tip a buyer from "maybe" to "sold."

Buyers are also getting greener. Water-saving features aren't just environmentally conscious; they're a big tick for home valuation and resale. Here are a few easy eco upgrades:

• Water-efficient taps and dual-flush toilets

• Aerated showerheads for comfort and conservation

• Insulated hot water systems for better performance and lower bills

Selling tip: These features are now expected, not just optional extras. They could also help you qualify for green loan products with better rates.

Fund your bathroom makeover with equity.

Bathroom renos typically range from $15K to $35K, depending on size and finish. And while that might sound like a lot, you don't need to pay it all upfront. Many Aussie customers choose to refinance their home loan and tap into their equity, which often results in:

• Lower interest rates than using a credit card or personal loan

• Affordable repayments spread across your home loan term

• Smarter money management with potential savings elsewhere

Solar panels and energy efficiency upgrades

Energy efficiency isn't just a lifestyle choice anymore; it's a value-booster. In 2025, savvy buyers are looking for homes that cut bills, not corners.

Solar systems, batteries, and smart appliances can seriously lift your appeal whether you're selling, investing, or staying put.

Installing solar doesn't have to break the bank. In 2025, eligible Aussies can access:

• Federal and state rebates

• Small-scale Technology Certificates (STCs)

• Low-income household subsidies

Aussie insight: Incentives vary across states, so it helps to talk to someone (like our mortgage brokers) who know the local rules.

Batteries also let you store solar energy and use it at night or during peak pricing hours.

More homeowners are going solar and installing batteries for various reasons:

• Power bill control

• Improved resale appeal

• Long-term energy independence

Listing tip: Homes with solar and batteries stand out. For buyers, that's money saved from day one.

Green home loans = smart finance

You don't have to fund energy upgrades upfront. With Aussie, we can help you:

• Explore green home loan products with lower rates

• Use top-ups or refinancing to bundle eco upgrades

• Structure repayments that work for your budget

Many customers are surprised by how affordable solar becomes once rebates and energy savings kick in. It's not just green; it's smart.

Outdoor living and alfresco areas: Where lifestyle meets liveability

Aussies love the outdoors, so it's no surprise that buyers in 2025 are looking for well-designed alfresco zones that feel like extensions of the home. So, what's trending outside?

• Covered patios and pergolas for year-round entertaining

• Outdoor kitchens with built-in BBQs and fridges

• Fire pits and heating to extend outdoor use

• Decking and composite pavers that look great and last

You don't need a full garden overhaul to add value—just smart, simple upgrades.

• Defined paths and lighting

• Native, low-maintenance planting

• Privacy screening for peace

Use your equity for outdoor upgrades.

With property prices rising in many suburbs, you may have more borrowing power than you think. With Aussie, we help you:

• Use home equity loans or top-ups

• Refinance for a sharper rate

• Build a plan for landscaping that fits your finances

Smart home upgrades: Tech that works hard for you

In 2025, smart home features aren’t just nice-to-have; they’re expected, especially for younger buyers who want convenience, safety, and sustainability all rolled into one.

The good news? You don’t need a massive budget to get started. Many of the most appealing upgrades are affordable, easy to install, and deliver real bang for your buck.

Start with the essentials; the smart tech buyers want:

• Security systems: Cameras, doorbells and locks you can control from your phone

• Automated lighting: Dimmable, motion-sensing or voice-activated

• Voice control: Integrations with Google Home or Alexa for lighting, heating and more

Why it works: These upgrades aren’t just about wow-factor; they’re practical. Buyers see them as modern essentials that save time and improve peace of mind.

Tech and sustainability also go hand in hand, and buyers are paying attention. Energy-saving smart features for 2025:

• Smart thermostats that adapt to how you live

• Energy monitoring apps to track and reduce usage

• Automated blinds or fans that respond to sunlight or heat

Aussie insight: These upgrades can help you qualify for a green home loan, or boost appeal for eco-conscious buyers.

Funding tip: Small upgrades, smart finance

Plenty of Aussie customers are:

• Self-funding starter kits under $1,000

• Using personal loans or mortgage top-ups for full integrations

• Exploring green finance options to roll upgrades into their home loan

Aussie tip: Not sure what your options are? Your Aussie Broker can help you run the numbers and compare lenders that support energy-efficient upgrades.

Secondary dwellings: More space, more income

With the rental market tight and families rethinking how they live, granny flats, studios, and self-contained units are having a moment. In the right area, adding a secondary dwelling can unlock dual-income potential and seriously boost your property's value.

But why is this a smart move?

• Weekly rental income of $300–$600+ depending on location

• Dual-occupancy homes often sell faster and above suburb medians

• Flexibility to host long-term tenants, short-stay guests or extended family

However, planning a second dwelling means doing your homework. Here's what to check:

• Zoning: Most councils allow them in R2 zones, but it varies

• Lot size: Typically 450m²+ (some LGAs allow smaller)

• Approval type: Fast-tracked CDC or full DA, which depends on the state

• Leasing rules: Some areas require the second dwelling to stay on the same title

Aussie tip: Chat with a builder who understands local regulations, or speak to your Aussie Broker for a referral.

How to finance your second dwelling

Secondary dwellings usually cost $120K–$200K, depending on size and spec. Here's how we help customers get it done:

• Top-up loans: Tap into your existing equity

• Construction loans: Stage payments as you build

• Investment loans: Great if the dwelling will be income-only

Aussie insight: We'll help you structure your loan around your goals, such as rental income, resale growth, or flexible family living.

Exterior facelifts: First impressions that stick

Curb appeal matters. It’s the first thing buyers and guests see and often what they remember. Thankfully, a few simple upgrades can lift your home’s whole presence (without a hefty price tag).

Bold colours might be fun, but neutral tones sell. They appeal to more people and make styling easier. Top colour picks for 2025:

• Warm whites

• Cool greys

• Soft greens and sandy neutrals

Street appeal tip: A light refresh with timeless tones can make your home feel bigger, brighter and more expensive.

You also don’t need a full redesign to give your place a lift. You can:

• Swap out the front door for something modern or bold

• Update cladding or render for a cleaner, sharper look

• Add house numbers, exterior lights and a new letterbox

Exterior upgrades are often small-budget, high-impact. Here’s what we see works best:

• A full exterior paint job from $3K–$8K

• DIY landscaping with mulch, edging and lawn for under $1,000

• Hardware swaps that modernise without the major spend

Aussie tip: Even if you don’t need financing for these upgrades, an Aussie Broker can help you plan out your full reno roadmap, especially if it’s one step in a bigger plan.

Home office upgrades: Setting up a home office

What started as a necessity in 2020 has become a non-negotiable in 2025. With remote work and hybrid roles here to stay, buyers are actively hunting for homes that support flexible work.

Adding a dedicated workspace is no longer a niche feature. It's a smart move that increases appeal and future-proofs your property.

You don't need to build a new room. Just carve out a space that feels deliberate and usable. Top upgrades that buyers and renters are loving:

• Built-in desks and shelves in bedrooms or hallway nooks

• Sound insulation to block out household noise (especially for families)

• Natural light and neutral colours that feel calm, clean and professional

Styling tip: Keep it practical but polished. A tidy, tech-ready space helps buyers visualise their own workday.

Many of our customers upgrade their home office setup using:

• Top-up loans (ideal for projects under $20K)

• Home equity refinancing to roll it into their existing loan

• Flexible repayment structures to match their income and goals

Flooring upgrades: First impressions from the ground up

Flooring might be underfoot, but it's top of mind for buyers. It's one of the first things people notice when they walk through the door and one of the easiest ways to freshen up your entire home.

Whether it's replacing tired carpet or installing something sleek and modern, upgrading your floors is a high-impact, low-hassle move. So, what's trending underfoot in 2025?

• Hardwood flooring: Timeless, durable and always in style

• Hybrid flooring: Waterproof, pet-proof, and cost-effective, which is ideal for families

• Polished concrete: Modern, easy to maintain and perfect for extensions or granny flats

Design tip: Use the same flooring through open-plan areas to create flow and make your space feel larger.

Old carpets can also turn buyers off fast, especially in high-traffic zones. Here's why more homes are ditching it:

• Hard surfaces are easier to clean and better for allergy sufferers

• They give a home a fresher, more modern look

• They photograph beautifully for online listings

Quick win: Can't do the whole house? Focus on key areas: entryways, living rooms and hallways deliver the most impact.

Flooring finance options that make sense

A full flooring upgrade can cost $10K–$30K+ depending on materials and labour. But you don't need to save that amount before you start. Aussie Brokers help homeowners access:

• Top-up loans

• Refinancing to unlock equity

• Home improvement loans with flexible repayments

Storage and garage conversions: Small upgrades, big space wins

Space sells, and in 2025, well-organised homes with clever storage stand out more than ever. From built-ins to garage conversions, it's all about making the most of every square metre.

Integrated, space-saving storage is high on the wishlist for today's buyers. Simple but effective options:

• Built-in wardrobes in every bedroom

• Walk-in or extended pantries for kitchen functionality

• Under-stair cabinetry for clever, hidden storage, especially in smaller homes

Aussie insight: Even updating the laundry with extra cabinetry can make a home feel more finished and functional.

It might be your next best reno project if you also have a garage that doesn't house a car. Think:

• Home office, studio, or guest suite

• Teen retreat or Airbnb option (where allowed)

• Insulation, flooring, and lighting to make it livable

Planning check: Some conversions may need council approval, especially if you add plumbing or renting it out.

Bonus tip: You don't have to lose all your parking space. Many people convert just half the garage or add a simple carport out front.

Funding flexibility with a line of credit

Storage upgrades and garage conversions often happen in stages. That's where a home equity line of credit (LOC) can be a great option. With a LOC, you can:

• Draw down funds as needed

• Only pay interest on what you use

• Avoid full refinancing if you're happy with your current loan

Renovation pitfalls to avoid in Australia

A good renovation can do wonders for your home, lifestyle, and property value. But not every upgrade is successful. At Aussie, we've helped homeowners navigate renos over the years. And we've seen a few missteps along the way.

Here are three common pitfalls to avoid and how to stay on track.

Overcapitalising

It's easy to get swept up in reno inspiration until you realise you've outspent what your local market will return. How to avoid it:

• Check the median home price in your suburb before setting your budget

• Use the Aussie App to view recent sales and property values nearby

• Focus on improvements that add function and broad appeal, not just high-end finishes

Remember, a luxe kitchen in a suburb full of budget-friendly brick homes might not get the return you expect. Renovate for the area you're in, not just your Pinterest board.

DIY disasters: Know when to call in the pros

Aussies love to have a crack, and for some things, like painting or landscaping, that's great. But there are jobs where DIY just doesn't cut it. Leave it to the licensed experts if it involves:

• Electricals

• Plumbing

• Waterproofing

Why does this matter? Dodgy workmanship can knock thousands off your resale price and even void your insurance. That "how-to" video might make tiling look easy, but buyers will spot a wonky grout line from a mile away.

Missing out on rebates and grants

From energy upgrades to accessibility improvements, there are a range of state, federal, and local programs that could reduce your reno costs if you know where to look. Before you start, check if you're eligible for:

• Solar rebates or battery storage incentives

• Green home loan discounts

• Home renovation grants for first-time renovators, seniors or people living with a disability

Where to start: Use trusted sources like your local council, Moneysmart, or energy.gov.au, or ask your Aussie Broker to point you in the right direction.

Renovation funding: Smart finance, made easy

Let's be honest; the dream reno can turn stressful if the money side isn't sorted early. Whether you're planning a big extension or want a fresh kitchen, getting the finances right from day one makes all the difference. That's where we come in. At Aussie, we help you:

• Compare loan options from over 25+* lenders

• Match the loan to your renovation type and budget

• Handle the paperwork, timelines and lender follow-ups

Aussie insight: The right home loan isn't always the one with the lowest rate. It's the one that gives you breathing room if your plans or budget shift.

Fixed vs variable loans: What works for renos?

Want both? Many Aussie customers choose a split loan (part fixed, part variable) to enjoy the features of each loan option.

Offset and redraw: Use your money smarter.

Are you already ahead on your mortgage? You might have enough funds in your offset account or available redraw to start your reno—no new loan is required.

Smart move: Some homeowners use offset for everyday savings and redraw for big-ticket upgrades. Your Aussie Broker can help set this up.

You might also be interested in: What home loan features can you add to your mortgage?

Ready to renovate? Let's build your plan.

Renovating should feel exciting, not overwhelming. With Aussie in your corner, it can be. Here's what to do next:

• Use the Aussie App to check your equity, property value and loan health

• Book a free^ chat with your local Aussie Broker

• We'll explore your options, run the numbers, and create a tailored reno funding plan for you.

Smart renos deserve smart finance and the right support to bring them to life.