In recent years, more and more investors are renovating and improving their properties to accelerate capital appreciation and seek higher rental returns. This type of investment is known as "renovation investment".
There are many forms of real estate investment in Australia. Most investors obtain their returns through land development, land banking, house extensions and purchase of new or existing property. The most common type of investment is the purchase of existing property to rent. However direct leasing is no longer the preferred option. A more efficient way to maximise returns is through renovation and improvement prior to leasing.
Investing renovation is a popular strategy where investors purchase properties with the goal of renovating and improving them to increase their value and rental returns. By undertaking renovations such as cosmetic upgrades, structural repairs, functional improvements, and adding desirable amenities, investors aim to enhance the property's market value and attract higher-quality tenants. This approach allows investors to accelerate capital appreciation and potentially generate greater returns when selling the property in the future. Successful renovation investment requires careful planning, budgeting, and project management skills to ensure a profitable outcome.
As the urban population in Australia continues to grow, urban land use is expanding into faraway suburbs. For old houses in inner-city areas, “knockdown and rebuild” has become the norm. Although the structure of old Australian houses was designed to last a century, the interior design and fittings require upgrades every 15 years. As people’s needs and tastes evolve, property design is changing too. Appearance has become more and more important, and this in turn drives rapid development in the property renovation industry.
According to data from the Australian Bureau of Statistics (ABS), the total value of property improvement and renovation in Australia has steadily increased over the last few years. At the end of 2020, it had reached nearly $9 billion a year.
With demand growing, renovation investment has become a mainstream service in the Australian real estate market.
EPLUS is here to help our customers maximise their returns by devising diverse strategies and plans for properties in different areas. We have introduced a streamlined and cost-effective system for old houses, which is specifically tailored to bring higher returns over a short period.
Maximise value increases in the short term
Maximise rental income
Tax depreciation – renovation costs can be tax deductible
Cash-out refinance for gained value
Quick increase in personal net worth