The intense love of Australians for renovations shows no signs of cooling down, at least according to a new report.
According to the latest report from Australian bank Westpac, renovations are on the rise throughout the country. The total worth of residential renovations approved climbed to $600 million, up 40% from 2013 figures. The number of home renovations has also more than doubled with a 147% increase since August 2010.
This rise in renovations is due in part to the need of homeowners to upgrade their homes.
Increasing Home Value
The number of homeowners doing renovations every year is at its highest in the past four years. This is the highest figure so far following the global financial crisis. Despite rising house prices, renovations are in demand, marking a sharp turnaround from the downwards renovation trend from 2002-2009.
“Favourable market conditions across Australia mean that many home owners have seen the value of their properties rise,” explained Gai Mcgrath, Westpac General Manager for Retail Banking. As a result, one in every four Australians has been able to get the money they need to improve their current home rather than move to a bigger property elsewhere.
Home valuation experts say the most popular choices are bathroom and kitchen makeovers. Perth experts say these are the most important rooms, especially for those looking to sell in a few years.
Experts add that rather than focusing on having a fancy bathroom, homeowners should focus more on practicality. Make sure the finishes and final touches are done at a high standard. In the kitchen, the design should be practical with a lot of bench space and storage.
Overtaking Market Movements
The Mount Lawley-Inglewood region was the most renovated location in Western Australia, with the Wembley-West Leederville-Glendalough and South Perth-Kensington areas taking the second and third spots, respectively.
Homeowners say the trend to renovate is a great way to increase property value at a faster rate compared to just waiting for the housing market to move. Renovation is also a smart investment strategy, as it improves your home’s value while avoiding the cost associated with a new property upgrade (e.g., stamp duty).
Renovations will always be relevant as long as homeowners want to have a house that’s not only practical, but beautiful as well.