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Generally they are improving the value, ie. adding a deck, updating a kitchens (less so than the deck). Replacing a HWS is not adding value but adding a deck, or adding an ensuite is. I've just looked at what we spent on two old timber queenslanders this year. Both happen to have needed HWS...

Wow! We don't spend anything like 2% of a property's value on maintenance. We wouldn't reach 0.5% without something major going wrong (this is for a $750K house). I have not included painting as that isn't done annually, but we have just painted the house I'm using as a guide, and it is not...