This year, renovations overtake new home builds in Victoria
More Victorians are choosing to update and renovate their homes instead of building new ones, the latest statistics from Master Builders reveal. This trend is expected to continue as high stamp duty fees and the inconvenience of a “big move‟ continue to make renovating an easier and more appealing option for many cash strapped Victorians.
Victorian housing starts, including detached dwellings and multi-unit developments, dropped by 15 per cent in the 2011/12 financial year and are expected to drop a further 7 per cent in 2012/13.
Alternatively, total investment in Victorian housing renovations grew 5.2 per cent in 2011/12 and is expected to climb a further 1.9 per cent this financial year to $7.16 billion.
“More Victorians are choosing renovations as a cost effective alternative to moving homes,” said Master Builders Executive Director Brian Welch.
“Renovations are becoming more and more attractive to homeowners as a way to increase living space, upgrade their homes and boost their financial security. This option causes minimal disruption to the family unit and preserves established social and personal networks by staying in the one place.”
Victoria is bucking the national trend in the renovations market with $350 million more spent on renovations in 2011/12 compared to the previous year. “These figures indicate some hopeful signs that Victoria is emerging from the building slump into a new era of increased activity as Victorians start investing more into improved homes.”
It’s not surprising that so many people are choosing to stay put and renovate their current home. We see so many our our clients looking for a place to move, and then weighing up the costs.
• Stamp duty. This can easily pay of a bathroom or kitchen renovation, and in many cases will cover the cost of both a bathroom and kitchen
• Agents fees. Add in the cost of advertising and the cost of the commission, and all of a sudden you have an ensuite renovation thrown in
• The cost of the move…
• And this is one that many people don’t even consider. It’s highly likely that when you move home, the new place will not be quite to your liking and down the track you have to invest in a bathroom renovation as the people who owned it before you couldn’t choose bathroom tiles to save themselves, let alone the daggy kitchen benchtop and flowery kitchen splashback they left you with!
Often a reconfiguration of the spaces you have will develop another bathroom or kitchen. We recommend that a three bedroom home has 1.5 bathrooms (a family bathroom and a powder room) and a 4 plus bedroom home has 2.5 bathrooms. Often you can sneak an ensuite into the corner of your bedroom or cannibalise some real estate from one of your kids.
Consider what you could do to renovate your home and make it more serviceable for you and your family as well as having a look out there on the market to see what is available. So let the dollars do the talking. The cost to stay put may be a surprise to you, and the inconvenience that you save yourself will be a welcome relief.
Sit down, have a cup of tea, and start planning your new home. Just like your old home, but the way you always wanted it.