Home values are rising: Median dwelling prices are up ~4.1% year-on-year nationally* and close to 10% in some cities.
Quick fixes and upgrades: Many Australians are using equity for kitchen refreshes, bathroom makeovers, and cosmetic updates.
Additions and extra space: Granny flats and home extensions are increasingly popular for families needing room or rental income.
Conversions and makeovers: Garage refits, backyard updates, and outdoor spaces are affordable ways to add lifestyle and value.
Over the past year, Australian property values have grown by 4.1 percent nationally*. Some states have outperformed this average, with Darwin leading at 10.2 percent, followed by Brisbane at 7.9 percent, Perth at 6.6 percent and Adelaide at 6.5 percent. That rise means more households now hold equity, which is the difference between what your home is worth and what you still owe on your loan.
Equity is not just a number on a statement. It represents opportunity. Used wisely, equity can be a way to improve how you live, upgrade your property, and even create new sources of value for the future.
This guide gives you a clear view of what equity could buy right now at different budget levels. Whether you own a house or a unit, you will see examples of projects that are realistic for your situation. From a $10k bathroom refresh to building a granny flat, you will understand what is possible and how to take the next step with confidence.
Rising home values and what that means for you
The growth in property values over the past year means many Australians have built up equity without making a single repayment more than usual. Equity is the difference between your home’s current value and the amount you still owe on your loan.
What makes equity powerful is how it can be used. Instead of sitting on the sidelines, you can choose to reinvest it into your home. This can help you:
Improve your day-to-day lifestyle
Increase your property’s value
Create flexibility or income opportunities for the future
Unlocking equity should not feel daunting. With the right support, it can simply be the bridge between where your property is today and where you want it to be.
You might also be interested in: Understanding home equity: what is it, and how to access it
Using equity by budget range
Every household is different, but thinking in budget ranges makes it easier to picture what equity could fund. Here are four brackets that show what is possible.
Under $10k – Quick fixes and small wins
When you have up to $10,000, equity can cover projects that refresh and uplift without major disruption.**
What this could cover:
Fresh paint inside or outside to reset the look of your home
Regrouting or resealing bathrooms for a clean, modern feel
Replacing tapware, lighting or cabinet handles with modern finishes
Landscaping a front yard, courtyard or balcony garden
Upgrading flooring in one or two rooms with hybrid boards or carpet
For houses, this often means garden work or driveway reseals. For units, it might be a balcony update or flooring refresh. Small projects like these may not be dramatic, but they often have a big impact on comfort and appeal.
$10k to $30k – Meaningful upgrades
In this range, you can move from cosmetic touch-ups into projects that modernise key living areas.**
What this could cover:
A mid-range bathroom makeover with new tiles, shower and vanity
A compact kitchen update with cabinetry, benchtops and appliances
A small deck, pergola or balcony improvement for better outdoor living
Replacing flooring across a main level with timber or hybrid boards
Entry and façade improvements such as new windows or a stylish front door
Houses often combine indoor and outdoor projects here, like a bathroom plus a deck. Units may focus more on interiors such as bathroom and kitchen updates. With kitchens and bathrooms topping Australian homeowners’ wish lists, this budget range is one of the most popular and effective for adding value.
You might also be interested in: Tips for upgrading or renovating your home
$30k to $80k – Smart value projects
With up to $80,000, equity can fund structural and premium upgrades that reshape how your home works.**
What this could cover:
A full kitchen renovation with an island, stone benchtops and premium appliances
A complete bathroom refit with high-end finishes and storage
Removing internal walls to create open-plan living
Exterior work such as repainting, roof restoration and landscaping
Converting a garage into a bedroom, office or living space
For houses, this is often where you can change layout and lifestyle, from open-plan living to larger kitchens. For units, it can mean premium kitchen and bathroom refits or flooring and lighting upgrades throughout. For double-storey homes, this budget might refresh an entire level with new bedrooms and bathrooms.
$80k+ – Dream builds and transformations
When you have access to more than $80,000 in equity, you can move into projects that redefine your property and lifestyle.**
What this could cover:
Building a granny flat for rental income or family living
Adding a ground-floor extension or even a second storey
Creating a master suite with an ensuite and walk-in wardrobe
Installing a pool alongside a full backyard design
Luxury refits with smart-home features and premium finishes
Granny flats have become one of the most sought-after additions in 2025, often outpacing pools in homeowner priorities. They add space and flexibility while also creating income opportunities. Extensions and second storeys are also in this budget, giving families room to grow without moving.
You might also be interested in: How does equity work when buying a second home
Why granny flats are a leading trend in 2025
Granny flats are no longer just for extended family. They are now a mainstream option that helps homeowners:
Generate rental income in a tight housing market
Support multi generational living
Increase property value with flexible, self-contained space
With many blocks able to support one, granny flats are increasingly seen as the smart way to turn equity into both lifestyle and wealth building.
House and unit options compared
Your property type influences what makes sense to invest in.
Houses offer scope for larger projects like granny flats, decks, pools and extensions.
Units are more suited to interior upgrades such as bathrooms, kitchens, flooring and balconies.
In both cases, equity can be used to improve daily living and strengthen long-term value.
How to unlock your equity with confidence
Equity is only useful if you can access it. That is where expert support matters.
An Aussie broker can help you:
Calculate how much equity you actually have
Match your equity to projects that fit your budget and goals
Refinance in a way that keeps you confident and in control
Unlocking equity does not need to feel overwhelming. With the right advice, it is simply the next step in making your property work harder for you.
Equity is more than a financial figure. Rising property values mean you may already have the funds to take on projects that improve how you live today and increase the value of your home for tomorrow. From a quick refresh to a granny flat, your equity could be the key to making it happen.