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Renovating your investment property can boost both capital value and rental yield—when done right. But how do you know what’s worth spending on, what to avoid, and how to manage it all from interstate?
In this episode of The Property Nerds podcast, we spoke with Belinda Smith—renovation expert and founder of RARE (Renovate and Real Estate)—to unpack budget-specific renovation strategies, what’s trending, common mistakes, and how to renovate without ever visiting your site. Here’s your data-backed renovation roadmap.
Renovation on a Budget: What to Do Under $5K, $20K, and Beyond
Under $5,000: Your greatest return on investment lies in paint. DIY if possible to save costs. Prioritise neutral tones and warm whites that create a welcoming atmosphere. Focus on internal walls and street appeal—freshen the entryway and garden for maximum impact.
Between $5,000 and $20,000: Now you can target kitchens and bathrooms—the two most value-adding areas in any property. Think: painting cabinetry, replacing benchtops, adding splashbacks, or updating taps and lighting. Small details matter here.
Above $20,000: Start looking at flooring upgrades (hybrid, vinyl planks, or engineered timber depending on the market), curtains, and complete room transformations. Just remember—know your demographic and avoid overcapitalising.
What’s Hot (and What’s Not) in Renovation Trends
- Timber-look flooring is in, especially warmer tones that offer a homely vibe.
- Wall sconces are back and bring affordable luxury to any room.
- Blues and greens are now considered “the new neutrals” for paint palettes.
- Ceiling-to-floor single-colour ‘color wash’ styles are gaining popularity.
- Gold fittings and rainfall shower heads are modern must-haves.
- Big vs. Small Tiles: Tiny mosaic tiles and oversized slabs dominate, but mid-size tiles are losing ground. Just be ready for extra grout scrubbing!
The Renovation Mistakes That Cost You
- Over-personalisation: Avoid wild or overly trendy designs that might alienate buyers.
- Overcapitalising: Don’t install luxury finishes like stone benchtops in low-demand areas.
- Ignoring your market: Always renovate in line with buyer expectations and local comparable sales.
- Wasting money on invisible upgrades: Focus on what buyers see—not what’s under the floor or in the roof cavity.
Renovating Interstate? Here’s How to Make It Work
Belinda proves that location is no barrier. With tools like WhatsApp, cooperative rental managers, and local franchise retailers (e.g. Carpet Court), investors can successfully renovate without setting foot on-site.
Key tips for remote renovations:
- Find reliable boots-on-the-ground (e.g. local renovators or agents).
- Source materials locally, even if you select them in your own city.
- Use visual communication and regular check-ins to monitor progress.
- Focus on value-adding finishes that elevate rent or sale price.
Renovation Returns: Doing the Math
Renovations are more than cosmetic—they’re a powerful investment tool. As Belinda and the hosts pointed out, spending $20,000 to increase rent by just $100 per week delivers a 26% return annually, not to mention potential capital gains.
Renovate with Purpose, Sell with Strategy
Whether you’re preparing for resale or aiming to attract quality tenants, every dollar should serve a purpose. From budget-conscious upgrades to style that sells, the secret lies in strategic, market-driven choices.
Get in Touch with Belinda Smith
Want personalised advice or support? Visit Renovate and Real Estate. She also shares regular content on YouTube and runs webinars for those looking to upskill or grow their renovation business.
Listen to the Full Episode
For the full discussion, tune in to The Property Nerds podcast and hear how Belinda breaks down renovation success by budget, buyer demographic, and design strategy.