See how a renovation achieved a 13 per cent yield from our business partners at BMT Tax Depreciation. Australia’s renovations industry appears to be profiting from weaker economic conditions and tighter lending standards, with alterations and additions to residential buildings hitting a historic high recently. Australian Bureau of Statistics December Building Activity data showed a 6.6 per cent increase in alterations and additions in 2018, with renovation spending reaching $2.27 billion in the December quarter.
This indicates homeowners and investors seeking to improve capital values and increase rental income have been renovating their properties, rather than purchasing anew. It’s expected this boom will continue, as Master Builders Australia has forecast homeowners and investors will spend $8.8 billion annually on renovations over the next five years.