Investment Strategy

Property Renovation Strategy — What Adds Value & What Doesn't

Worked examples, not forecasts

Yields, returns, build costs, rents, ROI percentages, payback periods, refinance outcomes, and "before / after" comparisons shown in guides, articles, and marketing materials are illustrative examples based on past PremiumRea transactions or standard scenarios. They are not projections of what any particular property will achieve for any particular investor. Actual outcomes depend on purchase price, loan structure and interest rate, renovation cost, vacancy, maintenance, council rates, land tax, insurance, depreciation, personal tax position, and broader market movements — none of which are guaranteed.

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Renovation Costs — Real Numbers from Our Projects

These are actual costs from our renovation team's recent projects:

Cosmetic (Light Touch): $3,000–$8,000

  • Full interior paint (2 coats): $6,200–$7,000 + GST
  • SPC flooring throughout: $62/m² installed
  • Deep clean and styling: $1,000–$2,000

Mid-Range: $15,000–$30,000

  • Kitchen renovation: $12,000–$15,000
  • Bathroom (tile, waterproof, fixtures): $15,000
  • Switchboard upgrade: $1,500
  • Ceiling lights + exhaust fans: $2,000
  • Colorbond fencing: $150/metre

Structural: $30,000–$80,000+

  • Restumping/foundation repair: $400–$800 per stump
  • Termite chemical barrier: $1,200–$3,200 (with warranty)
  • Shed demolition: $2,000
  • Asbestos removal: Licensed professional required (varies significantly)

Mandatory Safety Compliance:

  • Electrical safety check: ~$100 (every 2 years)
  • Gas safety check: ~$100 (every 2 years)
  • Smoke alarm inspection: ~$100 (annual)
  • First-time total: $500–$650 including minor repairs

What Delivers the Highest ROI?

From our portfolio data, the highest-ROI renovations are:

  1. Fresh paint (100%+ ROI): $6,200 spend can add $10,000–$15,000 to perceived value and increase rent by $30–$50/week
  2. Kitchen update (80–100% ROI): Modern benchtops, handles, and splashback — don't need full replacement
  3. Bathroom refresh (70–100% ROI): Retiling shower area (1.8m height), new fixtures, waterproofing
  4. Flooring (70–90% ROI): SPC vinyl planks are durable, waterproof, and tenant-proof
  5. Street appeal (50–70% ROI): Front garden, letterbox, entrance painting

Traps to avoid:

  • Swimming pools: High maintenance, insurance liability, limited buyer appeal
  • Over-capitalising on kitchens: A $40K kitchen in a $700K property is wasted money
  • Structural work without need: Don't restump unless there's active subsidence (20–25mm is normal in Melbourne)
  • Asbestos removal when encapsulation works: If asbestos is stable and non-friable, paint over it instead of removing

Talk to Our Team

Every property is different. Book a no-obligation strategy call to discuss how our buyer's agency services work. This is a general information conversation — not personal financial, tax, or credit advice.

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Important Information

PremiumRea Pty Ltd is a licensed Victorian real-estate buyer's agency. We are not a licensed financial adviser, tax agent, credit provider, or lawyer. Information on this website — including portfolio data, yields, capital gains, testimonials, suburb statistics, and guides — is general in nature only and does not take into account your objectives, financial situation, or needs. Past performance is historical and is not a reliable indicator of future results. Obtain independent professional advice before acting on anything you read here.

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