Renovations that add value Perth homeowners can count on – kitchens, bathrooms, cosmetic fixes and the one to avoid. Plus how to fund it from your equity.
General information only. This article on Renovations That Add Value Perth is provided for general information and does not constitute financial, credit, property valuation or building advice. Any renovation return figures mentioned are widely published national industry estimates and may not reflect actual results in the Perth property market. Strawberry Finance is a credit assistance provider, not a property valuer, real estate agent or builder. Actual renovation costs, property value increases and financial outcomes vary depending on individual circumstances.
Not all renovations improve your home’s value. If you are planning changes to your property, it pays to know which projects are worth the investment and which ones might leave you out of pocket when it comes time to sell.
This is a breakdown of the renovations that add value Perth homeowners can realistically count on, the one that usually does not, and how the money side works if you are thinking about funding the work from the equity already sitting in your home.
The kitchen is often the first thing buyers notice, and it can make or break their impression of a home. A dated, cramped kitchen can put buyers off, while a modern, well-presented one tends to draw them in.
Industry data backs this up: a minor kitchen refresh – new cabinet fronts, tapware, splashback and handles – typically returns somewhere in the order of 70-80% of its cost in added value, and a full renovation can add a meaningful percentage to a property’s overall value. The caution is that returns fall away quickly once the spend runs ahead of what the street supports.
A bathroom renovation is a smart way to make a big impact in a small space. Fixing leaks, upgrading a showerhead and adding storage are relatively affordable changes that can carry real weight with buyers.
Estimates suggest a well-executed bathroom update can add up to around 10% to a property’s value, with even small cosmetic touches like new fixtures making a difference. As with kitchens, waterproofing and tiling are the costly structural elements – if those are sound, a cosmetic refresh is usually the better value decision.
Simple, low-cost updates often deliver an outsized return, and they are the projects Perth homeowners most often underestimate. Repainting in neutral, contemporary colours and replacing worn flooring are two of the most consistently recommended fixes, with fresh paint alone regularly cited as one of the highest-return home improvements and quality flooring upgrades known to recoup a large share of their cost.
As a rule, a pool usually doesn’t add enough value to cover its own renovation costs. Pools are expensive to install and come with ongoing upkeep and maintenance, and research shows the value they add rarely matches what they cost.
One widely cited estimate puts the added value of an in-ground pool at roughly 5-8% of a home’s value – well short of typical installation costs, and that is before factoring in ongoing running expenses. That does not mean never build one. It means build it because you want to swim in it, not because you expect it back at settlement.
It’s worth discussing renovation decisions with a real estate agent, a property valuer, and design or building professionals to make sure your changes are genuinely going to add value to your home. An agent who sells in your suburb every week will tell you quickly whether a project is standard for the street or over-capitalising.
Where Strawberry Finance fits in is the funding side. If you are thinking about accessing equity to make changes to your home, it is worth finding out how much is actually available to you and what structure suits the work you are planning – a redraw or offset arrangement, a loan increase, or a construction-style facility for a larger project. Each has different costs and different implications for your repayments.
Kitchens, bathrooms and basic cosmetic work are consistently the strongest performers. A minor kitchen refresh typically returns somewhere in the order of 70-80% of its cost in added value, a well-executed bathroom update can add up to around 10% to a property’s value, and fresh paint is regularly cited as one of the highest-return home improvements available. These are national industry estimates – what a renovation returns in your specific suburb is best confirmed with a local agent or valuer.
Usually not enough to cover its cost. One widely cited estimate puts the added value of an in-ground pool at roughly 5-8% of a home’s value, which is well short of typical installation costs before you account for ongoing maintenance, water, power and insurance. A pool can still make a property more attractive to some buyers, particularly families, but it is better treated as a lifestyle decision than an investment.
Often, yes. If your property has grown in value and your loan balance has reduced, you may have usable equity that can be accessed through a loan increase, a redraw facility, or a separate renovation split. Lenders will generally want to keep total borrowing within a set loan-to-value ratio and will assess your capacity to service the larger loan. For structural work, a construction-style facility that releases funds in stages may suit better than a lump sum.
Over-capitalising means spending more on a renovation than the property can return at sale, usually because the finish level is ahead of what the street supports. The practical test is to find out what the best homes in your suburb sell for, compare that to your current value plus your planned spend, and stop short of the ceiling. A local agent or a valuer can give you that figure before you commit.
It depends on the condition of the property, your timeframe and your budget. Cosmetic work – paint, flooring, landscaping, decluttering – is usually worth doing because it is cheap relative to the lift in presentation. Major structural work close to a sale is far riskier, because you carry the cost and the timeline without certainty of recovering it. An agent appraisal in both states, renovated and as is, is the fastest way to decide.
If you fund renovations by increasing your home loan, the additional amount is added to your loan balance and your repayments rise accordingly. Spreading a renovation across a 30-year loan term keeps the monthly cost low but increases the total interest paid over time, so some borrowers set up the renovation portion as a separate split over a shorter term. With the cash rate now at 4.85% following the Reserve Bank’s November 2026 decision, it is worth modelling the repayment at the current rate before you commit to a budget.
Note: This article is intended to provide general information only. It does not take into account the financial situation, objectives, or needs of any individual reader and must not be relied upon as financial product, credit, property valuation or building advice. Renovation return figures quoted are widely published industry estimates and are national in nature; actual value added depends on your property, suburb, build quality and market conditions at the time of sale. Strawberry Finance is a credit assistance provider and is not a property valuer, real estate agent or builder. Readers should obtain independent valuation, building and financial advice before committing to a renovation or to borrowing against their home.
Renovations that add value Perth homeowners can count on – kitchens, bathrooms, cosmetic fixes and the one to avoid. Plus how to fund it from your equity.
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