Renovation ROI: Myths and Pitfalls for Sellers

Simon Abbott’s advice to Victorian unit and apartment block owners: Not every renovation pays off at sale time—especially with investment property where buyers focus on yield and minimal downtime. Here’s Simon’s breakdown of upgrades that often disappoint.

What’s Rarely Worth It Pre-Sale?

• Full kitchen overhauls: Expensive, time-consuming, and unlikely to return full value unless targeting owner-occupiers.
• Designer bathrooms: Investors rarely pay extra for high-end fitouts if rent demand is already strong.
• Solar and “green” upgrades: May look good in marketing but don’t often shift investor-buyers’ numbers, unless it materially improves net yield.
• Extensive landscaping: Curb appeal can matter, but big spends on gardens are not usually recouped, especially on apartments or blocks.

Scenario: The Unnecessary Kitchen

Simon recalls a vendor putting $45k into kitchens and baths for a tenanted block—sale price increase was marginal compared to a similar block that had simply maintained tenancies and kept appliances serviced. In Victoria’s investor-driven markets, rental performance beats “wow factor.”

When Should You Spend?

• If selling individually as renovated units—maybe, but only if a clear premium is proven.
• If targeting owner-occupiers—not the typical block/tenant sale Simon specialises in.
• Always do: repairs, cleaning, pest control, and basic touch-ups. These drive buyer confidence further than major renos.

Simon’s verdict: “Ask yourself, will this work attract higher-paying tenants and boost my sale price? If no, skip it.”

For situation-specific advice on maximising sale value for blocks of units or apartments in Victoria, contact Simon Abbott and Collings.