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, Irene Cujko, local franchise owner at Mortgage Choice in Kings Langley, 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 Irene.
“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,” Irene said.
To help homeowners make the right finance decisions when renovating to create their dream home, Irene 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 Irene. 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, Irene 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 9674 8014, or log onto www.mortgagechoice.com.au/irene.cujko.
Mortgage Choice has sourced a home loan for well over 350,000 people since 1992.
It works with all manner of property finance borrowers via hundreds of franchises.
The company writes one in every 25 home loans in Australia by providing professional guidance on, and choice of, products offered by an extensive panel of leading lenders. Many of its brokers provide a broader service, helping customers source commercial and personal loans, asset finance, deposit bonds and providing referrals for risk and general insurances.
Uniquely, Mortgage Choice pays its franchisees the same commission rate for home loans they write, regardless of rate paid by the lender a new customer selects, working in the customer’s best interests to tailor a solution to them.To cater to the growing needs of its customers, Mortgage Choice soft-launched in October 2012 its new financial planning business. Mortgage Choice Financial Planning will officially launch in FY14.The company has no balance sheet or funding risk, and consistently delivers strong profits and attractive yields. It listed on the ASX in 2004 (MOC) and is a member of the Mortgage & Finance Association of Australia (MFAA).Recent recognition: 2012, 2011 Australian Broking Awards Major Brokerage of the Year – Franchise; 2012 Australian Broking Awards Best Training and Education; 2012 Australian Broking Awards Best Ethical/Social Responsibility Program; No.1 on The Adviser magazine’s 2012, 2011, 2010 and 2009 Top 25 Brokerages list; 2012, 2010, 2009, 2008, 2006 and 2005 MFAA Awards Retail Aggregator/Originator of the Year; 2011, 2010, 2009 and 2008 10 Thousand FEET Top 10 Franchise list; 2010 Forbes Asia-Pacific Best Under A Billion list.Mortgage Choice holds an Australian Credit Licence: no. 382869, issued by ASIC.