June 19, 2013
Homeowners revamp homes to improve their quality of living
It would seem that Australians’ addiction to DIY television shows is being felt closer to home, with 43% of homeowners planning a renovation.
Speaking about the findings from the 2013 Homeowners’ Intention Survey (the Survey) of over 1,000 Australian mortgage holders, Ebony Curtis, mortgage broker at Mortgage Choice in Cheltenham, said that of those looking to renovate, over 77% 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," said Ebony.
"This lifestyle focus was further highlighted by the fact that of those Australians intending to renovate, 15% 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% and 27% of respondents, respectively."
The Survey also revealed that of those intending to renovate, 54% are planning major cosmetic renovations such as retiling or replacing cupboards, while 27% are planning major structural changes including changing the layout of the home and 19% 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," Ebony said.
To help homeowners make the right finance decisions when renovating to create their dream home, Ebony says 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," said Ebony.
When considering how much homeowners were intending to spend on their renovation plans, the Survey found 72% had budgeted $20,000 or less, 20% had allowed between $20,001 and $50,000, and 9% had set aside over $50,000 to create their ideal home.
While renovating is a great way to make lifestyle improvements, Ebony encouraged homeowners 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 03 9585 7779, or visit https://www.mortgagechoice.com.au/anthony.smith