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

A light-touch cosmetic renovation runs $3,000 to $8,000. Full interior paint in two coats is $6,200 to $7,000 + GST, SPC flooring is $62 per square metre installed, and a deep clean with styling is $1,000 to $2,000. These are actual costs from our own renovation team, not estimates.

A mid-range renovation is $15,000 to $30,000. Within that, a kitchen renovation is $12,000 to $15,000, a bathroom including tiling, waterproofing and fixtures is $15,000, a switchboard upgrade is $1,500, and ceiling lights plus exhaust fans are $2,000.

Structural work runs $30,000 to $80,000 and up. Restumping is $400 to $800 per stump, a termite chemical barrier with warranty is $1,200 to $3,200, shed demolition is $2,000, and asbestos removal is quoted per job. These are the items that turn an apparently cheap purchase into an expensive one, which is why we inspect for them before you buy.

Across our own completed projects, fresh paint is the strongest single line item: about $6,200 of spend, against $10,000 to $15,000 of assessed uplift and $30 to $50 a week in additional rent. Read the denominator before you read any multiple — that is a figure on the paint spend alone, not a yield on the property, and the uplift is a valuer or agent opinion rather than a realised sale price. A kitchen update — benchtops, handles and doors rather than a full replacement — typically recovers most, but not all, of what it costs. These are recorded outcomes on completed jobs, not projections, and the whole-property measure is the one that describes the investment: median gross yield after works 5.77% across 345 purchases settled Jan 2023 – Sep 2025.

Swimming pools carry high maintenance, insurance liability and limited buyer appeal. Over-capitalising on kitchens is the other common error — a $40K kitchen in a $700K property is wasted money that the rent will not recover. Structural work that is invisible to a tenant rarely earns its cost back in rent, though it may still be necessary for safety or compliance.

An electrical safety check at around $100 every two years, a gas safety check at around $100 every two years, and an annual smoke alarm inspection. The first-time total is $500 to $600 once initial remediation is included. These are landlord obligations, not optional improvements.

On our own projects a $10,000 to $15,000 spend has produced a $30,000 to $50,000 increase in bank valuation and $300 to $400 a week in additional rent on multi-let configurations, with cost recovery in 8 to 12 months. Those are recorded outcomes on specific properties, not a formula that applies to every house.

Repairs that maintain the property — replacing a broken tap, plumbing repairs, pest treatment, painting to maintain rather than improve — are deductible in the year incurred. Capital improvements that add value, such as a new kitchen, a bathroom renovation or structural work, are added to the cost base and depreciated rather than claimed immediately. PremiumRea is not a registered tax agent; confirm the line with your accountant.