1) The Renovation Mirage

Social media loves before/afters. Lenders, trades, strata by-laws and flood overlays… not so much. Many “value-adds” underperform because buyers:

• Pay retail for a fixer (no discount for defects)
• Attempt everything (scope creep = blown timelines)
• Hit compliance walls (strata bans, heritage, flood)
• Misread demand (luxury spec in suburbs that value function)

Rule of thumb: If the deal only works with perfect timing and zero delays, it doesn’t work.

2) Red Flags = Step Back

Look for these early warning signs before you fall in love with the floorplan:

• 🧱 Unpriced structural risk: major cracking, roof sag, dodgy plumbing/electrical
• 🧰 Unapproved works: enclosed garages, DIY decks—insurance/lenders may balk
• 🏢 Weak strata: tiny sinking fund, known defects, “no external changes” by-laws
• 🌧️ Overlay conflict: flood/bushfire/heritage that kills or delays your plan
• ⏳ Vacancy blowout risk: scarce trades or a timeline that misses peak leasing season

Subtle buyer’s-agent edge: we price defects into the offer and walk at the first unfixable constraint.

3) Upgrades That Actually Pay in Australia

Think liveability over luxury. Tenants and future owner-occupiers pay for function.

• Layout wins: add a study nook/robes, open a non-structural wall, create a real second living zone
• One wet area, done well: kitchen or bathroom (not both, unless numbers allow)
• Comfort: reliable heating/cooling, a practical laundry, decent storage
• Outdoor room: modest deck/pergola + shade = “extra living space”
• Street appeal: landscaping, lighting, clear numbering/mailbox for first impressions

Pick one scope per project:

• GOOD (2–3 wks): paint, LEDs, tapware, blinds, landscape
• BETTER (3–5 wks): one wet area + robes/doors, AC
• BEST (5–8 wks): add 2nd bath or real second living + outdoor upgrade

Mixing scopes is how budgets explode.

4) 60-Second Feasibility (Write 4 Numbers)

• A (as-is value): $_____
• R (reno + 10–15% buffer): $_____
• F (friction: holding, permits, vacancy): $_____
• E (end value from renovated comps): $_____

Equity = E − (A + R + F)

• Holding long term? Aim for ≥ 0.8 × R uplift plus a rent bump.
• Flipping? Target ≥ 1.2 × R to justify duty, selling costs and risk.

Cash-flow check: Post-reno rent must comfortably cover repayments and add to your buffer.

Tax lens (AU): Repairs usually deductible; improvements are capital (Div 40/43 depreciation). Track every invoice. Rising values can lift land tax—plan ownership across states.

7) Two Fast Contrasts (Why it Works / Hurts)

✔️ Brisbane house (middle ring): second bath + AC + laundry reset → stronger family appeal, faster lease, real equity uplift.
✖️ Melbourne high-rise: cosmetic-only in oversupplied tower → rent/yield barely move; resale tied to tower comps.

8) The One-Line Filter

“If no one called this a ‘renovator’s delight’, would the numbers still stack?”
If yes—proceed. If not—walk.

The best renovation plays aren’t flashy; they’re clean—one clear scope, real demand, conservative maths, tight execution. Do that a couple of times and you’ve built the equity engine for the rest of your portfolio.



Want a 3-line sanity check? Send your budget + city + one listing. We’ll reply with: best scope, realistic rent lift, and whether it’s a buy or bye.