Should You Renovate Your Property? Here’s What the Experts Say.
Whether you're an investor, a homeowner thinking about selling, or someone who just wants a more comfortable place to live - renovation looks different for each of you.
Max Style managing director Ramin recently sat down with Andrew from Loan Market Howick to break it all down: the different types of renovation, how to add value, and the numbers behind smart investment property decisions.
Renovation Isn't One-Size-Fits-All
The first thing to understand is that the right renovation depends entirely on your goal. Ramin puts it simply:
“If you are selling, you want fresh paint, fresh carpet, a nice kitchen – maybe a bathroom depending on how far you want to go. If you want to rent it out, the goal should be to attract good tenants and get a return on your investment. If you are living in the house, it’s about your comfort.”
Andrew agrees – and adds that the single best-value improvement for any property is often the simplest one:
“Paint and floor coverings are the best return on investment you can do for any property. It costs very little, relatively, and you come in and it’s fresh and smells nice and it looks good. That’s where you start.”
For homeowners renovating to live in, Andrew is also clear: even if you slightly overcapitalise, you still have years ahead to enjoy the result – rather than renovating six months before selling and letting someone else enjoy it.
Add a Bedroom. Add Value. (No Consent Needed in Most Cases.)
If you’re looking at an investment property, one of the clearest wins — in both value and yield — is adding a bedroom. And that doesn’t have to mean building an extension. In many homes, the extra bedroom is already hiding in the existing floor plan — it just needs to be unlocked through smart reconfiguration.
Andrew frames it simply: “Investment properties are all about numbers. If you’re adding a bedroom or a bathroom, you’re adding value. I don’t even need to run the numbers to add a bedroom — I know that just produces better yield. It’s a no-brainer.”
Ramin explains how Max Style approaches this in practice — not by extending the footprint, but by rearranging the space that’s already there:
“We’ve done a lot of projects, especially in two-bedroom places. We come in, maximise the use of wasted space — a big living room, a large laundry — and add another bedroom. We convert a two-bedroom to a three-bedroom. Depending on the area, that adds $50,000–$100,000 to the value of the property, plus another $100–$200 per week to the rent.”
And here’s the part most people don’t know: because this kind of internal reconfiguration doesn’t change the building’s footprint or structure, in most cases you don’t need building consent.
The Investor’s Guide to Renovating for Profit
For investment properties, renovation is a numbers game – and the numbers can be compelling when you approach it the right way. Andrew’s advice on how to renovate smart for investment:
“You have to do hard-wearing stuff. Showers that aren’t tiled, nothing fancy – just stuff that doesn’t leak, doesn’t break, and lasts 20-plus years. Bland is bland – it doesn’t go in and out of fashion. And paint and floor coverings first – always.”
Ramin breaks down the numbers for a typical full renovation on a 3-bedroom, 1-bathroom investment property:
- Full renovation (paint, carpet, kitchen, bathroom): ~$100,000
- Extra interest at 5%: $5,000/year
- Rent increase: $100–$150/week = ~$7,000–$7,500/year
- Reduced maintenance costs for 3–4 years: another $1,000–$3,000 saving
- Better tenants – and the ability to choose them
From an investment standpoint, Ramin says the best options beyond a standard reno are converting a garage, adding a bedroom, or adding a bathroom. Andrew agrees:
“You can run the numbers easily and go – this makes sense. Or, actually, I’m not going to get the return. Investment properties are all about the numbers.”
And Andrew adds one more thing most people overlook: a well-presented property lets you choose your tenants. In any market.
“You actually get to choose which tenant, which makes all the difference. I’ve had terrible tenants in the past. Since investing in higher-quality product, I’ve had lots of applicants for every property – even in a quiet market.”
Ready To Renovate?
Whether you’re adding a bedroom, doing a full investment property reno, or just freshening up before a sale – Max Style can help you get it right, on budget and on time.