The finishing touch: why quality matters in new builds and renovations

As one high-profile renovation series wraps up and another begins, Australia’s ongoing fascination with property transformation continues to play out both on screen and in suburbia.

In practice, however, the success of any project, whether a renovation or a new build, relies less on creative flair and more on strategic intent.

Many renovators naturally gravitate toward personal taste, yet the most effective outcomes emerge from aligning design decisions with a property’s long-term financial and functional objectives.

Research from the Housing Industry Association (HIA) indicates that finishes typically account for between 20 and 35 per cent of total construction or renovation budgets, yet their influence extends far beyond aesthetics.

Defining finishes

Finishes are the materials and fittings that define a property’s usability, aesthetics and durability.

They are distinct from structural components such as walls, roofs or foundations and can be broadly categorised into three types:

• Functional finishes include materials that directly affect usability and lifespan like flooring, cabinetry, benchtops, tapware, appliances and integrated fixtures. These selections determine how well a property performs under daily use and how often it requires maintenance.
• Design finishes enhance visual and sensory appeal, encompassing lighting, paint, wall treatments, feature joinery and decorative elements. While primarily aesthetic, they strongly influence buyer perception, tenant satisfaction and resale potential.
• Exterior envelope finishes protect and define the building’s outward presentation, including cladding, render, roofing and external joinery. These finishes play a critical role in weatherproofing, energy efficiency and curb appeal, all of which contribute to long-term asset protection and value retention.

High-impact finishes, particularly in kitchens, bathrooms, flooring and exterior facades, consistently deliver the strongest influence on both property value and market appeal, with the quality and specification of finishes directly affecting rental appeal, resale value, depreciation potential and long-term maintenance costs, making them one of the most consequential variables in a property’s financial performance.

Industry evidence supports this view, with properties featuring durable, well-specified finishes consistently outperforming comparable dwellings built with budget materials. They deliver higher rental yields, lower maintenance expenditure, stronger depreciation potential and superior long-term capital growth.

Consider a townhouse development in Brisbane where two investors purchase comparable $850,000 homes on the same street.

One allocates $170,000 to finishes (20 per cent of the build), while the other invests $297,500 (35 per cent). Five years later, the lower-spec property has required two carpet replacements, three full repaints, averages six weeks of vacancy annually and commands $600 per week in rent. The higher-quality townhouse, by contrast, has incurred no major maintenance, averages two weeks vacancy per year, commands $680 per week in rent and holds a $70,000 valuation premium.

This simple comparison highlights that strategic finish choices shape every measurable outcome.

The owner-occupier lens: lifestyle and long-term value

For owner-occupiers, finishes represent a careful balance between personal comfort and financial foresight.

Functional elements such as engineered stone benchtops, moisture-resistant cabinetry and hybrid flooring enhance day-to-day living while ensuring long-term durability. Design details including bespoke joinery, imported tiles and refined lighting elevate ambience and usability. Premium exterior finishes such as energy-efficient cladding systems or insulated roofing add both aesthetic and economic value through reduced maintenance and improved energy performance.

Strategic home owners recognise that while design trends evolve, durable and timeless finishes preserve value.

Over-personalising spaces or prioritising novelty over longevity can diminish resale appeal. Selecting neutral tones, resilient materials and sustainable finishes ensures a home remains adaptable to future buyers while maintaining its sense of individuality and comfort.

The investor lens: durability, appeal and depreciation

For investors, finishes must achieve a triple objective of durability, broad tenant appeal and tax efficiency.

Rental properties experience greater wear and tear, so resilient materials are essential. Functional finishes such as stone benchtops, hybrid or luxury vinyl flooring, moisture-resistant cabinetry and premium tapware minimise ongoing costs.

Design finishes like neutral palettes, LED lighting and contemporary fittings create a sense of modernity and increase tenant satisfaction.

Exterior envelope finishes are equally critical. High-quality cladding, rendered façades and durable roofing reduce maintenance cycles, improve building performance and protect against premature depreciation.

Tax savings

From a taxation standpoint, the Australian Taxation Office (ATO) permits investors to claim depreciation on both capital works and plant and equipment.

Finishes such as blinds, appliances and lighting can potentially attract accelerated depreciation in eligible circumstances.

Two kitchens may look identical, but their depreciation outcomes can differ significantly depending on whether cabinetry is fixed or removable, benchtops are stone or laminate, and whether low-value assets are properly itemised.

Engaging a registered quantity surveyor to conduct a physical site inspection ensures all qualifying assets are identified, correctly classified, and accurately claimed, maximising depreciation deductions while maintaining full ATO compliance.

Consulting with a quantity surveyor is also invaluable for aligning finish selections with financial goals, helping investors enhance rental appeal, minimise maintenance costs and optimise both short-term cash flow and long-term capital growth.