New outlook for renos
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.”