New out­look for renos

Herald Sun - Property - - NEWS - PETER FARAGO

PRE­DIC­TIONS of a mod­er­at­ing Mel­bourne prop­erty mar­ket means sellers can no longer count on out­ra­geously high prices for their prop­er­ties.

How­ever, with 20 per cent me­dian price growth across Mel­bourne since 2012 home­own­ers have seen the equity in their prop­er­ties grow sig­nif­i­cantly.

A re­cent study sug­gests that plenty of Aus­tralians are ready to take on ren­o­va­tion jobs that will boost their home’s ap­peal and po­ten­tial fu­ture sale price.

The West­pac Home Own­er­ship Re­port re­vealed that 43 per cent of Aus­tralian home­own­ers are ei­ther ren­o­vat­ing or are con­sid­er­ing a pro­ject, with the be­lief the work will add sig­nif­i­cant value to their prop­erty.

The re­port, by Lon­er­gan Re­search, was the re­sult of in­ter­views with 1115 Aus­tralian home­own­ers and found that more than 40 per cent thought work in the kitchen or bath­room would have the great­est im­pact on the sell­ing price.

How­ever, just one in 10 be­lieved re­mod­elling their main bed­room or liv­ing area would help fetch a higher price.

West­pac head of home own­er­ship Nathan McMullen said it was en­cour­ag­ing that home­own­ers were look­ing at ren­o­va­tion jobs that would im­prove the value of their prop­erty.

“It’s good to see Aus­tralian home­own­ers are con­sid­er­ing what will have the best im­pact on their home’s fu­ture saleabil­ity,” Mr McMullen said.

“Bed­rooms and liv­ing ar­eas don’t of­ten dif­fer too greatly from house to house, so it may be more ben­e­fi­cial to look at how they can struc­ture their fi­nances to ren­o­vate the bath­room and kitchen.”

Age also played a part in be­liefs around value-adding, with Baby Boomers prov­ing to be more in favour of su­per­fi­cial im­prove­ments: 56 per cent be­lieved paint­ing the in­te­rior would add value and 40 per cent chose land­scap­ing. But th­ese jobs did not rate has highly with Gen Y re­spon­dents, val­ued by just 30-odd per cent.

The re­port found two-thirds of Vic­to­rian home­own­ers with a home loan had equity in their prop­erty, how­ever two in five weren’t sure if they could un­lock that equity to fund a ren­o­va­tion.

Ray White Brunswick di­rec­tor Jamil Al­louche said most home­own­ers wanted to ren­o­vate, but many are un­sure where to start.

“My ad­vice is to do plenty of re­search so you know ex­actly what needs to be done,” he said.

“If you’re ren­o­vat­ing with the in­ten­tion to sell, make sure you un­der­stand the lo­cal mar­ket and what fea­tures buy­ers are look­ing for.”

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