Australians have been embracing home improvements, investing a staggering $1 billion in May 2023.
This marks a 4.3% increase from the previous month, according to the latest ABS figures. It appears that even with tightening budgets, renovators are unwilling to hold back.
The surge in renovations might be attributed to the influence of home improvement shows that we avidly watched during the pandemic. However, there is another crucial factor at play here – renovating one’s home is often a more economical choice than selling it and buying elsewhere.
For those considering some home improvements, it’s essential to know the popular choices. According to the 2022 Houzz & Home Report, Australians frequently target the kitchen (23%) for renovation, closely followed by living rooms, bathrooms, and bedrooms (each at 20%).
Before embarking on a renovation journey, it’s crucial to crunch the numbers and assess the likely costs involved. While minor renovations can be cost-effective as DIY projects, significant structural changes or specialist work may require professional assistance, leading to higher expenses.
To offer some insight, the latest Archicentre Cost Guide provides estimates for common home improvements. For instance, timber floor polishing might cost between $75 and $120 per square meter, interior painting up to $35 per square meter, an extension up to $4,600, and a new kitchen (excluding appliances) up to $48,000.
Although renovations can be a considerable investment, they can significantly enhance both your lifestyle and the value of your home. Additionally, certain “green” improvements like rooftop solar panels can contribute to cost savings through reduced utility bills.
When contemplating how to finance your renovation, careful planning is essential. Smaller projects can be funded through cash savings or personal loans, which typically have shorter terms, helping minimize interest costs. For more significant undertakings, a home loan top-up might be an accessible solution if you have sufficient home equity to qualify for additional funds.
For extensive projects, a dedicated renovation or construction loan could be viable. These loans provide funds gradually as various project stages are completed, with interest payments applicable only to the drawn-down amount, making the cost more manageable.
If you’re ready to pursue your renovation dreams, it’s wise to explore various funding options and thoroughly understand the associated costs. Feel free to reach out to us on 1800-E-LOANS, and we can assist you in finding the best approach to finance your project.
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