From Fixer-Upper to Million-Dollar Home: Why Renovating Can Outperform Buying Turnkey
This Collaroy project started with an outdated property split into two apartments. The mission was clear: turn it into a high-end family home designed for coastal living. The result? A contemporary home that not only transformed how the owners lived day to day, but also created enormous value in the process. In this post, we’ll dive into how smart renovations, paired with the right design and financing strategies, can unlock tremendous potential.
Why Renovating Beats Buying a Turnkey Home
Renovating offers a level of flexibility that buying a finished home simply can’t match. It’s an opportunity to create a space that perfectly fits your lifestyle and preferences, all while adding significant value. When you renovate, you’re not just inheriting someone else’s design—you’re crafting your own vision.
Another benefit is cost efficiency. You can often save on stamp duty compared to purchasing a new property, which can make a big difference in today’s real estate market. If you rent out the property before selling, you could also see stronger long-term returns, making renovation a smart financial move.
Renovating Before Selling: Unlocking Your Home’s Potential
If you’re considering selling, a well-executed renovation can be the difference between an average price and a premium result. Buyers today are drawn to homes that are move-in ready and reflect a modern lifestyle. A thoughtfully designed renovation can give your property that turn-key appeal while also broadening its buyer pool.
Even modest updates to kitchens, bathrooms, or outdoor living spaces can deliver outsized returns. Strategic renovations not only enhance first impressions but also remove objections from buyers who might otherwise factor in the cost of updating.
Financing Your Renovation — What You Should Know
There are several ways to finance a renovation, including investment loans, construction loans, or even tapping into an existing mortgage. Instead of draining your savings, financing allows you to keep flexibility and spread costs in a manageable way.
It’s wise to talk to a mortgage broker early in the process, not just once you’ve finalised plans. This helps you understand your capacity upfront, avoid surprises later, and align your renovation goals with your financial strategy.
From a mortgage perspective, renovating an established property often delivers advantages that go beyond the numbers.
“Older homes are usually in better locations. That is why every property show comes back to the mantra: location, location, location. Established homes sit in areas with character, stronger amenities, and long-term scarcity value. Renovating builds on that foundation” says local broker Chris Dodson of Manly based Mortgages Plus.
“Build quality is another advantage. Many older homes were constructed with materials and craftsmanship you rarely see today. Double brick, Art Deco detailing, or architectural features that modern estates cannot replicate. Buyers recognise this, and the uniqueness creates emotional appeal. Scarcity drives demand.”
“Bank valuations also work in your favour. Lenders base their assessments on comparable sales, and a major component of this is land value. Renovating an established property in a prime location means you are improving an asset that already carries strong underlying land value, which supports the valuation uplift. This in turn brings down the loan-to-value ratio, allowing access to sharper interest rates.”
Chris adds; “The final piece is how you finance it. Smart structuring, whether through equity release, construction finance, or splitting loans for flexibility, ensures you not only unlock the property’s potential now but also set yourself up for future opportunities. Done right, a renovation does not just give you a better home, it gives you a stronger balance sheet for the long run.”
The Role of Design — What Really Adds Value
Design is where lifestyle and investment intersect. While adding square footage can increase value, the real difference often comes from how the home functions day to day. A designer ensures every element—layout, flow, storage, light, and finishes—works together seamlessly.
Many people worry about budget blowouts when renovating. Having a designer involved from the outset ensures selections and design decisions are made according to your budget, keeping tight control of costs throughout the process. With professional documentation, builders can quote accurately, which reduces the risk of unexpected expenses or costly variations.
“Good design really does make a difference when you’re selling,” says local real estate agent Matt Turner from Cunninghams. “Presentation isn’t just about making a place look nice — it’s what helps a home stand out and get buyers emotionally hooked. That’s when you see the competition kick in and prices start climbing.”
He adds, “The real magic is when more than one buyer feels that strong connection with a property. Suddenly it’s not just a house for sale, it’s the one they want. That’s what creates momentum.”
“And it’s not only the styling — it’s the whole package. From the photos to the way the story is told in the campaign, everything is about showing off the lifestyle on offer. That’s what turns a good result into a great one.”
Case Study – The Collaroy Project
The Collaroy project is a prime example of how strategic renovations can significantly increase a property’s appeal and value. What began as a dated coastal home was transformed into a contemporary five-bedroom, three-bathroom residence designed for modern family living.
Expansive indoor–outdoor connections, a butler’s pantry, generous laundry, abundant storage, and a pool now capture the essence of relaxed yet elevated coastal life. Comparable properties without these upgrades achieved far lower results, showing how thoughtful design can deliver both lifestyle and financial rewards.
Case Study – The North Steyne Project
Our North Steyne project in Manly tells a very different story but highlights the same principle: the power of strategic renovation.
This beachfront property had been owned by the same family since it was built and hadn’t been updated since it was first purchased in the early 1990s. When it was inherited, the family decided to unlock its true potential rather than sell it in its outdated state.
In 2023, real estate agents valued the home at around $4 million, largely thanks to its prime location. After a $600,000 renovation, the property was revalued at approximately $6.5 million — a remarkable return on investment.
This project demonstrates how inherited properties, particularly those in desirable locations, can offer enormous potential. Instead of passing on an outdated home or selling it below its peak value, a well-planned renovation can transform it into a modern, high-value asset that benefits the whole family.
Renovating for Your Lifestyle
The most powerful aspect of a renovation is how it can be tailored to your specific lifestyle. Unlike buying an already finished property, renovating means you’re in control of the details—whether that’s maximising storage for a growing family, creating an entertainer’s kitchen, or designing a low-maintenance home for retirement living.
When your home is designed around your routines and preferences, it becomes more than just a financial investment—it elevates your everyday life.
Renovation Tips for Maximising Equity Growth
To maximise your renovation’s value, make strategic decisions from the outset:
- Engage a designer early so your vision and budget align before trades are involved.
- Focus on high-return areas like kitchens, bathrooms, and storage.
- Be aware of area ceiling prices so you don’t overcapitalise.
Secure planning approvals early to prevent costly delays.
And if you’re considering buying a dated home with renovation potential, speak with a designer and builder first to understand the scope and costs. Then talk to your mortgage broker about your capacity to bring your vision to life.
Final Thoughts: Renovate Smart, Invest Wisely
With the right design and financial strategy, a renovation can turn an outdated property into a home that’s both a joy to live in and a high-performing asset. Whether you’re upgrading your current home or eyeing a fixer-upper, consulting with a designer and broker early will help you avoid surprises, protect your budget, and unlock the true potential of your property.
Further Reading:
Check out this article on how architectural expertise can boost a home’s value by $700K: Designing for Profit.
