One thing you can never change about a property is its location, so choose carefully. 

You may not be able to afford the suburb you want, so focus on the things that will always be important to buyers - decent public transport options, good schools and a range of local amenities.

Structural integrity is key when choosing a property to renovate. If the bones are solid, your project is going to run more smoothly and cost you less. 

To save spending your budget on fixing the basics, first investigate:

1. What materials were used to build the house? 
2. Are the foundations solid? 
3. Is there any evidence of leaking or water damage? 
4. Are there any signs of movement or slippage? 

Ask an expert to check these things out thoroughly before you buy, so you can spend your money on the fun stuff. See this full property inspection checklist to guide you.

Do your homework and read the fine print. There may be a very good reason why no one has knocked that wall out. As well as reviewing the Land Information Memorandum (LIM), you should consider:

●    Commissioning specialist reports 
●    Requesting the full property file, viewing the GIS map and speaking to a planner at the council
●    Reviewing any restrictions around zoning 

If you're planning major work, you may need resource or building consents. These can be costly and take time, so find out what's involved before you commit to any renovation, and factor them into your budget. 

Work out if you can complete any of the renovation work yourself,  and when you'll need to call in the experts. 

Be realistic. Most people can handle simple cosmetic work, like painting, wallpapering and landscaping, but you might need professionals for the bigger stuff. Completing a job right the first time will save you time and money in the long run. 

If you need professional help, work out how much this is going to cost and factor it into your budget.
 

Budgeting and planning are key to any renovation project. Before you commit to a property, sit down with a calculator and factor in every element of the project, including a contingency budget - unexpected things will happen along the way. 

If the purchase price and renovation costs equal more than what you expect to sell the property for, then you've overcapitalised and you won't make a profit. 

You might want to reconsider this particular renovation project and keep looking - there are countless properties out there for you.

As Auckland's leading real estate company, Barfoot & Thompson have access to hundreds of new property listings every month. 

Our salespeople know their communities inside and out, plus we have access to all the latest sales data to help you get to grips with the current marketplace. 

Find out how Barfoot & Thompson can help you find your next property.