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Renovating for profit: why the old game no longer works

By Jen Bishop •

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BuildHer Collective runs its final FREE Stop Dreaming, Start Renovating – 3 evening online event for 2022 next week! 

Rebeka Morgan of BuildHer Collective, an experienced builder, renovator and renovation educator, explains why the old game of renovating for profit no longer works.

Let’s go back a little with this conversation! Remember the times when developers were all men, they’d buy a renovators delight to tart up a bit. They’d throw a lick of paint on the walls and the tiles, then maybe they pop a box on the back and then resell it for a profit? The mantra was do it as cheaply as possible – which we think has given all developers a bad name!

Well, we are here to say that this does not work anymore!

The market is far too smart for that now. We know when a renovation is cheap and nasty and we are demanding better and more!

Why is this? The vast number of renovation shows have meant that we are more aware of how to renovate, we know what we want and we don’t want to pay for work which we could have done better ourselves. There is also way more access to information – purchasers now know what you bought a property for and how much time it took to renovate, and they’ll make their own calculations on what the renovation is worth (in most situations, forgetting to factor in holding costs, stamp duty and sale costs)!

So, does this mean you can’t make money renovating for profit?

No – but it does mean you need to focus on creating value, presenting a product that is fit for your market and providing solutions that will be valued and paid for by the purchaser. 

Style and flair mixed with practicality (ummm, yes that means storage!) has become the key and creating a home that the purchaser is willing to pay for which is more than the cost of the work. There is so much inspiration and imagery available now and our dreams of the home we will live in have adjusted accordingly!

The good news is that this is increasing the standard of the build and means that if you are working in this area you can do really well renovating for profit. 

However, it’s not all good news. 

With the increase of these renovation shows we have seen more people pick up tools and decide to tackle projects without really understanding the process and the costs, missing the mark and making either no profit or, much worse, a loss. We recently spoke to a couple who had great success in their first build (probably due to a rising market) but despite investing more than 500 hours of physical work on each of the two subsequent projects, they only just broke even. They couldn’t understand what had gone wrong. 

We unfortunately hear this type of thing all the time, and whilst renovating for profit can be super fun, there is a key: profit. You do need to make a profit, and a profit that is worth the investment of time. 

At BuildHer Collective, we have an amazing group of women, DevelopHers, who are renovating and developing for profit the right way! They know how to run the numbers and make sure they are adding value from the outset. With our experience in this game, we have identified 11 different aspects of renovating for profit that can make or break the budget! 

If you have dreamed of renovating for profit, or perhaps you already are giving it a go and you want to know how to maximise your profits, then please join us for our free Stop Dreaming, Start Renovating – three evening event:

Stop Dreaming, Start Renovating for Profit!

When: Monday 7 to Wednesday 9 November 2022, 7.30-to-8.30pm

Where: Online in the comfort of your own home

Register HERE!

For more inspiration, check these DevelopHers who have all been featured on Interiors Addict in the past:

AFTER lounge
1970’s Melbourne home transformed to take in the landscape
Today’s before and after is a bit of a wild one. The original 1970s era home was so overgrown that…
AFTER sitting room
An interior designer’s thoughtful and successful heritage renovation
We love a period home renovation around here and when this one crossed our desks, we couldn’t help but sit…
AFTER front elevation
Edwardian beauty revealed under 80s facade and saved from demolition
After working in oncology for 15 years, Yolanda Aarons decided to scratch the renovation itch via a home in Melbourne’s…
Before & after: An amazing California Bungalow transformation in Melbourne
Built in the 1930’s in the Melbourne suburb of Bentleigh, this Californian Bungalow was in a pretty sorry state when…
How to avoid making costly mistakes when you take on your own reno
It seems that building and renovating has never been more popular or exciting in Australia, either driven by the desire…

Don’t forget to register here and join The BuildHer Collective for this fun-filled event next week!

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November 3, 2022

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Brand new furniture in an 1877 house and IT WORKS! Brand new furniture in an 1877 house and IT WORKS!

@castleryau have named the talented stylist @stevecordony as their first Australian brand ambassador and he's curated a capsule of their furniture which he styled to perfection at his stunning country house @rosedale_farm 

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Good luck!

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Comment the season you THINK you are below (spring, summer, autumn or winter) and I'll send you the link to the quiz so you can double check!

Fun!

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Tag a friend who'll be coveting the TM7! It's available from next week!

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Awards are always a great place to get inspo. Chec Awards are always a great place to get inspo. Check out the kitchen and bathroom of the year winners in this month's @hia_au @csrdwelling Housing Awards. There's more winning homes and rooms to check out in our blog post on the homepage, via link in bio or stories now. 

Kitchen by @build.theory Bathroom by @birdblackdesign and @aspire_constructions 

#hiaawards #hiaawards2025 #awardwinninghomes #australianinteriordesign
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Jen Bishop

About Jen Bishop

Jen Bishop is our owner and publisher and an experienced journalist and editor. She founded Interiors Addict in 2011. Jen also works as a copywriter and comms consultant to small business owners and brands, helping them with their own content as well as working out what will make them appealing to the media.

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