Smart ways to get the most out of a small backyard

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Not everyone ends up with a quarter-acre dream, but even the smallest slice of the backyard can be transformed into something beautiful and brilliantly functional.  

Whether you’ve just bought your first home, are planning a renovation, or want to add value before you sell, this guide is packed with practical, budget-friendly ideas to help you unlock the potential of your outdoor space. 

From vertical gardens to plunge pools, we’ll show you how to make every metre count. 

1. Think vertical: Go up, not out 

When floor space is tight, height becomes your best friend. Vertical design helps you maximise growing space, improve privacy, and create visual impact. 

Top vertical ideas: 

• Install hanging racks or trellises to grow herbs, strawberries or succulents. 

• Use fences or walls for climbing plants like star jasmine, bougainvillea or passionfruit. 

• Mount slimline shelving or floating garden panels for pots and tools. 

• Add a vertical water feature for sound, softness and serenity. 

Pro tip: Use reflective surfaces like mirrors or metallic finishes to visually double the space, just position them thoughtfully to avoid glare. 

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2. Create zones even in small spaces 

Zoning makes a backyard feel larger and more organised. By dividing your space into defined “rooms”, you’re creating structure and functionality. 

How to zone smartly: 

• Use planter boxes or outdoor rugs to separate lounging, eating or kids’ play zones. 

• Lay stepping stones or gravel paths to guide flow and add interest. 

• Install a pergola, umbrella or shade sail to define a sitting or reading area. 

With a few clever tweaks, you can go from one open space to a multi-functional backyard that works smarter, not harder. 

3. Choose multipurpose furniture and features 

Every item in a small yard should serve more than one purpose. Look for clever furniture that doubles up on utility and storage. 

Space-saving winners: 

• Built-in benches with under-seat storage. 

• Fold-out tables and stackable chairs. 

• Fire pits that convert to tables with fitted lids. 

• Modular lounges that reconfigure to fit your space. Many now include hidden compartments. 

Use our Borrowing Power Calculator to explore how much you could borrow if you’re considering a renovation loan to fund these upgrades. 

4. Add water features without drowning in costs 

Yes, you can have a pool, even in a tiny backyard. It’s all about choosing the right shape, size and setup. 

Options to explore: 

• Plunge pools: Compact, modern and increasingly popular for suburban blocks. 

• Stock tank or above-ground pools: A rustic, affordable alternative. 

• Lap pools: Long and narrow, ideal for side yards. 

• Vertical water walls: Add ambience and mask urban noise without taking up ground space. 

Before you dive in, check council regulations. Most installations, even small plunge pools, need permits and must comply with fencing and filtration standards. 

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5. Use lighting and surfaces to ‘stretch’ the space 

Small backyards can feel bigger with the right light and surface choices. 

Design tricks: 

• Uplighting and path lights extend usability into the night and make the space feel taller. 

• Light-coloured pavers and gravel reflect sunlight and open up the area visually. 

• Mix materials, like timber decking, artificial grass or tiles, to create texture and delineate zones. 

6. Choose low-maintenance landscaping 

Don’t want to spend your weekends weeding? Smart plant choices can give you a lush look with minimal upkeep. 

Good picks for Aussie yards: 

• Natives like kangaroo paw, lomandra and grevillea are drought-resistant and low fuss. 

• Dwarf citrus trees in pots for a Mediterranean touch. 

• Raised veggie beds for herbs and leafy greens are great for tight corners. 

Keep it cohesive. Too many plant types in a small space can look cluttered. Stick to 3-4 hero varieties and repeat them across the space. 

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7. Make it budget-friendly (and DIY where you can) 

You don’t need a massive budget to create a standout backyard. In fact, small yards often cost less to upgrade, especially if you’re handy with a drill or paintbrush. 

High-impact, low-cost ideas: 

• Repaint fences in fresh, modern colours like charcoal or sage green. 

• Add a privacy screen with vertical timber slats or fast-growing bamboo. 

• Install string lights or solar garden lights for instant ambience. 

• Build raised garden beds, planter boxes or DIY fire pits on a weekend. 

Thinking bigger? If you’re planning a more significant outdoor overhaul, an Aussie Broker can walk you through your renovation loan options, so you don’t have to dip into your emergency fund. 

FAQs: Small backyard, big questions 

1. How can I make my small backyard look bigger? 
   Go vertical, stick to a light and cohesive palette, use mirrors and lighting, and avoid clutter. Simplicity adds space. 

2. Can I install a deck or pergola without council approval? 
   Sometimes. Rules vary by state and council. For example, structures under a certain height and size might be exempt. Check before you build. 

3. What features add value in small outdoor spaces? 
   Think function and finish: privacy screens, outdoor lighting, decks, BBQs, and low-maintenance gardens are high on buyer wishlists. 

4. Can I refinance to fund outdoor renovations? 
   Yes. If you’ve built equity in your home, refinancing your loan could free up funds. Talk to an Aussie Broker to explore your options. 

5. Where do I start with a renovation budget? 
   Use the Aussie Property Hub to access suburb-specific property reports and get a feel for what upgrades are common (and profitable) in your area. 

You might also be interested in: How to access equity to renovate your home

Big dreams don’t need big spaces 

A small backyard doesn’t mean small potential. Whether you want to entertain, relax, play with the kids or add value to your home, it’s possible to do it all with the right approach. 

With Aussie’s tools, expert brokers, and flexible loan options, you’ve got everything you need to turn your tiny yard into a space you love. 

Ready to explore your renovation finance options? Talk to an Aussie Broker today. 

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