Recently featured in The West Australian, Margie Reid shared insights on strategic renovations that can improve rental returns and long-term property value.
A fresh coat of paint can instantly improve the appeal of an investment property, but strategic upgrades are what help drive stronger rental performance and long-term value.
According to Ms Reid, Perth’s strong property market has seen investors paying a premium in recent years, making it more important than ever to focus on strategic improvements that enhance rental appeal, liveability and long-term capital growth – without overcapitalising.
She said practical, functional renovations continue to deliver the strongest results, particularly when they address maintenance issues, improve layout and modernise key areas such as kitchens and bathrooms without requiring major structural changes.
“Upgrading kitchens and bathrooms remains a cornerstone of value creation because these areas have a significant impact on both buyer and tenant perceptions,” Ms Reid said.
She also noted that smaller, cost-effective updates – including new tapware, lighting, cabinetry handles and neutral paint schemes – can significantly refresh a property and improve appeal without excessive spending.
Ms Reid explained that renovation priorities often differ depending on the property type. Apartments and townhouses typically benefit from space-efficient improvements that maximise functionality, while standalone homes may place greater emphasis on exterior enhancements and long-term structural upgrades.
Importantly, she cautioned investors against renovations driven by personal taste rather than market expectations.
“Renovations prioritising personal taste over durability, neutrality and market expectations tend to diminish perceived rental value,” Ms Reid said.
For first-time investors, she recommended understanding what tenants and buyers in the local market are willing to pay for before committing to renovation plans.
“Stick to a clear budget based on the property’s likely end value and ask yourself: ‘Will the market pay more for this or am I just paying more for it?’” she said.
Before commencing any renovation work, Ms Reid encouraged investors to seek professional advice to ensure planned upgrades align with market demand and support long-term investment performance.
