Australians have always loved renovating. During the property boom we saw a major surge in renovating as home buyers turned to run down homes for affordability and investors realised the opportunity to renovate enchanced the value of their investment.

Today, the desire to add value to our own homes continues. There's definitely a group of buyers who want a ready-to-move-into property, but the many of us love the challenge of adding our own style.  It can be great fun.

If you're thinking of renovating, before you get started you need to consider four key factors.

1. Talk to your council. Structural renovations may require a DA approval, so make your council the first port of call.
2. Talk to Fair Trading. Ask your state's Office of Fair Trading about home warranty insurance.  In NSW, renovations exceeding $12,000 must be insured. Your builder can organise this for you. Keep the documentation, especially if you're selling soon after the renovations are complete, and always use only licensed tradespeople.
3. Don't over-capitalise.  Don’t spend more than you have to but don’t skimp on the important stuff.  It’s a fine line so get some advice from as many experts as you can (further details on this below).
4. Keep re-sale in mind.  It's rare for today's home owners to spend their whole lives in one property.  At some point you're likely to sell, so don't make renovation decisions that will reduce the value of your property (seek an agent's advice on this).

My renovating tips for investors and owner-occupiers differ slightly.  But for the purpose of this post I’ll cover owner occupiers.

It's your place
When renovating your own home, you should definitely be guided by what you like but keep re-sale in the back of your mind. I'd strongly recommend talking to an architect about structural changes and an interior designer regarding the finer points. After that, talk to a local agent.  Ask them to come to your property and give you their advice on what would add or reduce your home's value.  A good agent will happily do this for you.

Structural renovations
If you're looking at structural renovations, I'd suggest making living, dining and kitchen areas open plan as this is the popular in today's marketplace.  Creating a second living room will add a great deal of value and alfresco entertaining spaces are extremely important.  If you have the room to build a nice big entertainers' deck, go for it.

Gardens
If you've got one, your backyard is one of your property's most important features. It should be a tranquil space with low maintenance plants and grassy space for the kids to play. If you're living in an apartment, create a balcony garden.

Colours
A neutral palette with soft coffee colours, beige, whites and off-whites will add a distinct contemporary feel to your home. They're great base colours and are always best when it comes to re-sale as they provide a modern blank canvas for buyers.

Kitchens and bathrooms
Kitchen and bathroom renovations will cost the most but add the greatest value to your property. The recent evolution of materials such as sinks, tapware, bathtubs and kitchen appliances has been incredible.  Suddenly, 'label' kitchen appliances like Miele are becoming the norm, as are frameless glass showers and large designer bench-top sinks in bathrooms. And let's not forget the rise of the Caesarstone bench top.

Have some fun with these rooms. You don't want to over-capitalise but high quality fixtures and fittings will definitely add style and will be appreciated by future buyers.

Quick tips for the kitchen

• If you can afford the 'label' appliances, go for it
• Go for stainless steel appliances over white plastic
• CaesarStone bench tops and glass splashbacks look fantastic
• Maximise storage space – extend your cupboards to the ceiling etc

Quick tips for the bathroom

• Look at ceramic tiles with marble or travertine effects – ceramic is the cheaper option but can often look just as good
• Use the money you saved on the tiles to buy some stylish tapware
• Go for a frameless glass shower and CaesarStone vanity
• Keep the bathtub separate – showers over baths are less desirable
• Maximise storage space

You can learn a lot by watching TV shows on home renovations or reading home decorating magazines – there's hundreds to choose from!

I've recently become involved in a show called Australian Renovations, the show and the website will really help to open your mind to some ideas, and maybe help you crystallise thoughts that are already in your own mind!

Finally, good luck!