It would seem that Australians’ addiction to DIY television shows is being felt closer to home, with 43 per cent of homeowners planning a renovation.
The findings of Mortgage Choice's 2013 Homeowners' Intention Survey of over 1,000 Australian mortgage holders showed that of those looking to renovate, over 77 per cent regard this as a means to improve their quality of living.
While renovations can potentially increase the value of a property, our survey results show that the purpose for many Australians is to improve their lifestyle by customising their home to suit them.
This lifestyle focus was further highlighted by the fact that of those Australians intending to renovate, 15 per cent were looking to renew their outdoor entertainment area first. This was among the top three most popular areas to renovate and followed upgrading the kitchen and bathroom at 28 per cent and 27 per cent of respondents, respectively.
The Survey also revealed that of those intending to renovate, 54 per cent are planning major cosmetic renovations such as retiling or replacing cupboards, while 27 per cent are planning major structural changes including changing the layout of the home and 19 per cent are planning minor cosmetic changes like a coat of paint.
Once you have settled on a renovation plan, it's important to turn your attention to how you intend to fund the project. Depending on the scale of changes, there may be a number of different finance options to consider such as a loan top up, personal loan, line of credit loan or even a construction loan.
To help homeowners make the right finance decisions when renovating to create their dream home, asking for specialist help is a sensible idea.
A good first step is to talk to a local mortgage broker, like myself, to clarify your property goals. Following that, I could help you assess the nuts and bolts of the finance options most closely aligned with your needs and circumstances.
When considering how much homeowners were intending to spend on their renovation plans, the Survey found 72 per cent had budgeted $20,000 or less, 20 per cent had allowed between $20,001 and $50,000, and 9 per cent had set aside over $50,000 to create their ideal home.
While renovating is a great way to make lifestyle improvements, homeowners are encouraged to consider a number of factors before redesigning their home, including but not limited to:
- Avoid over capitalising: Investigate whether you can achieve your renovation without over capitalising on the investment, that is, when the cost of the project outweighs the value it will add to your property.
- Add up all the costs: Do your homework so you know what costs you are up for from the beginning. Be realistic about what you can achieve with the budget you set yourself, and be sure to stick with it.
- Have a good builder on board: Undertake sufficient research to decide whether you have chosen an expert builder who is fit for your renovation plans. This means getting detailed quotes and testimonials.
If you want to learn more about your home loan options, call Mortgage Choice in Paddington on 07 3369 5620.