Right across the Nepean region, home owners are improving the value of their properties through renovations, and according to Penrith mortgage broker Paul Holland, many are using a refinance or an increase to their existing home loan to fund the project.
Australians are keen renovators, and Penrith residents are no exception. Some are inspired by the smorgasbord of home improvement reality shows, but for many home owners in Penrith it simply makes better economic sense to renovate rather than to sell up and move.
Renovations – avoid the transaction costs of buying and selling
A key point in favour of renovating is that virtually every dollar you spend goes straight towards improving your home. This could be for a new kitchen or bathroom, general improvements for painting, new curtain, landscaping or even for a new pool for summer!
By contrast, the transaction costs associated with selling and buying a new home can be very expensive. Along with real estate agent commissions, legal expenses and removalist fees, buyers also face considerable stamp duty charges.
As a guide, Penrith’s median house price is currently $700,000. A home owner upgrading to a property priced at say, $800,000 can expect to pay $31,390 in stamp duty. That’s money that goes straight out of your pocket and into government coffers yet it could be put back into the value of your home if you choose to renovate instead of move.
Renovation loans in Penrith
If you love the area you live in but your family has outgrown your home, or you’d just like to modernise your place, a renovation makes sense.
However, many of my Penrith home loan customers are unsure how to go about funding the project. The best solution for many is to either increase their current home loan or refinance their loan to another provider to use some of the equity in their house. In fact, Mortgage Choice’s latest Loan Purpose Report showed loans for renovations rose 62.5% between April 2016 and April 2017.
With interest costs so low, and property values continuing to rise in Penrith, taking out a loan to fund renovations can be a money-smart move, and my team of Penrith home loan specialists can explain which renovation loan in Penrith is best suited to your needs. Or call me on 02 4789 0808 for tailored advice.
Make your Penrith renovation a success
Renovations have a habit of costing more than anticipated, so it pays to allow some wiggle room in your budget for unexpected expenses caused by things like building delays or a change of plans midway through the project.
With a financial buffer in place you don’t face the prospect of completing the project on the cheap, or worse, ending up with an unfinished renovation.
For tailored advice on renovation loans in Penrith call me – Paul Holland, today on 02 4789 0808. Or drop in and see me at our office in Nepean Village shopping centre.