Replacements and Refurbishments
Cash-flow calculation

Rust, Wear and Rot
Destroy over 14 building components; some 10 times during a building's 120 year life.

Deteriorating components include:-

● Exterior walls and windows
(Replaced every 60 years or 3100 weeks)

● Carpets, vinyl and curtains
(Replaced every 20 years or 1040 weeks)

● Appliances and furniture
(Replaced every 15 years or 780 weeks)

● Bathrooms
(Replaced every 25 years or 1300 weeks)

● Kitchens
(Replaced every 25 years or 1300 weeks)

● Paint inside and out
(Replaced every 13 years or 676 weeks)

● Roofs and spouting
(Replaced every 35 years or 1820 weeks)

● Water pipes and drains
(Replaced every 65 years or 3380 weeks)

● Fences, gates and sheds
(Replaced every 40 years or 2080 weeks)

● Heating and ventilation systems
(Replaced every 15 years or 780 weeks)

● Insulation
(Replaced every 40 years or 2080 weeks)

● Electrical delivery systems
(Replaced every 65 years or 3380 weeks)

● Floors & piles
(Replaced every 65 years or 3380 weeks)

● Remaining building
(Replaced every 120 yrs or 6240 weeks)

See Cash-flow calculator to set your own estimations of costs and life expectations..

To pay for replacements & refurbishments:-
Investors (or banks) provide loans that rents repay over the life of each deteriorating component.

Example:-

A $5,500 heating / venting system lasts 15 years.
A 15 year mortgage loan purchases the system.
Over 15 years $11pw repays the loan and interest.

After 15 years the heating / venting system needs replacing again

To calculate the cost of replacements:-

1) Divide each component's cost by its life span (in weeks)
2) Add (decreasing) interest for each (decreasing) loan
3) Total the loan repayments.

ANZ Home loan calculator is an alternative.