Australians choosing to build instead of buy the home of their dreams

Australians have a long standing fascination with renovations. Simply tune in to any of the major television networks and you’ll find a number of shows indulging this passion. New data from Mortgage Choice has found a variety of factors are driving homeowners to renovate instead of move to a new home.

The renovation was not without its challenges. The first of which was deciding to stay in the home while the renovation was underway. There was also a significant amount of dirt and dust to deal with but Bronwyn says, ‘it was absolutely worth every bit of pain and anxiety.’ The Scarce family aren’t alone in their experience, with 24% of Aussies citing dirt and mess as their main pet peeve during their renovations.

The majority of respondents (34%) cited unreliable contractors as their number one pet peeve but fortunately, the Scarce family had a positive experience with the professionals they enlisted for their renovation. Bronwyn said, “our builder was amazing. We did the renovation in a phased approach so that the new extension allowed us to stay on the property. Packing up and moving our whole family and pets into a rental home really wasn’t plausible.”

When the time came to fund their renovation, the couple had originally approached a lender but were unhappy with the service they received so they considered other options. Bronwyn’s friend had recently undergone a similar renovation and recommended their broker, local Mortgage Choice broker James Hasselle.

Bronwyn travels a lot for work and Richard is a Head Swimming Coach. “Using a broker made life much easier for us. James Hasselle and team at Mortgage Choice did all the legwork to find a suitable loan and structure to suit our needs,” said Bronwyn.

The couple settled on a construction loan to fund the various stages of the renovation, with an offset account, which they found worked well for them in their previous home loan.

Speaking about her experience with their broker Bronwyn said, “James and his team were awesome. James took the time to explain the details around the construction loan which made an otherwise stressful time, a breeze.”

The family now live in their dream home complete with second storey, new master suite, new kitchen and dining area and the home has an approximate market value of $1,150,000.

Renovation tips from Mortgage Choice CEO, Susan Mitchell:

  • Homeowners should let the scope of their renovation be determined by whether their intention is to sell or whether they are looking to improve their lifestyle. I encourage owners to approach their renovation with a clear plan, setting a budget and sticking to it.
  • Adopting a strategic approach should help renovators avoid emotional decision making. Further, if they are working to a limited budget they should consider tackling the renovation in stages starting with their home’s facade and communal living areas as these are the most visible areas of any home.
  • Renovators looking to add value to their home with the intent to attract buyers should remember that people view housing with a critical eye. As such, I would discourage renovators from DIY jobs where possible and recommend they hire a professional in order to ensure their resources are spent wisely.

If you are thinking of renovating, it's always a good idea to have a good grasp of the costs involved. Your local Mortgage Choice expert will take the time to talk you through all of these expenses and do all the legwork when finding you the right finance option.

Posted in: Renovating