Research from Roy Morgan shows an ongoing rise in renovation activity in our country¹.
Specifically, in the last 4 years close to 8.4 million out of 13.6 million homeowners in the country did renovation work on their property.
That’s a whopping 61% of us whipping out the hammers and splashing out on new paint.
Find out why Aussies are renovating not relocating:
According to a survey from Houzz and Home Australia², it’s about four key things:
- Staying in a place we love
- What we can actually afford
- Getting the best return on our investment, or
- Creating our perfect fit.
As you’d expect, there’s a bit of a difference across age groups.
‘What we can afford’ is a big category for the 25 – 34 group, which makes sense. It’s a time of life when many of us are getting our careers going and having young kids at the same time – not cheap to do.
‘Perfect fit’ probably tends to come a bit later when the youngest has stopped spreading food and drinks around the place.
Where do we focus our efforts?
Craig James, the chief economist at CommSec noted that: “… data shows that renovation loans hit seven-year highs”… suggesting that more people have decided to stay put and add extra rooms or revamp kitchens and bathrooms³. Yes Craig, they have but it seems they’re busy in the living room as well.
It’s true, the kitchen is still the big favourite – with people choosing to lose outdated looks and putting in new benchtops to make it feel fresh. But in the Houzz study, the living room takes a surprising equal second place. Multiple studies tell us that the bathroom renovation adds more value overall4, so it seems we’re renovating with our hearts for ‘perfect fit’ more than we are with our ‘future value’ heads. Perhaps we Aussies are home-loving nesters at heart, and that’s what really drives us. Renovation may be our new way of having our perfect ‘new’ home. Of course we still want a quality outcome, which is why most of us use a professional to get the job done – and that means having a good plan and doing a budget.
If you’re thinking about renovating and wondering what to budget for it, check out our handy article on how to work out your renovation budget. Alternatively, there are plenty of ways for you to give your home a great makeover on a budget, learn about it here.
Getting started on your dream home renovation has never been easier.
Talk to a Go Mortgage Specialist on 1300 855 244 about your home loan options and find out how you can refinance your existing home loan and get funding for your current projects.
Sources:
¹ http://www.roymorgan.com/findings/7102-renovation-nation-home-improvement-in-australia-201701090848
² https://www.completehome.com.au/renovations/expert-advice-10-ways-to-add-value-to-your-property.html