Majority of reno budgets below $20k
A new survey has found that just under half of property owners intend to renovate, with a vast majority looking towards budget cosmetic renovations.
Of the 43 per cent of respondents to the 2013 Homeowners’ Intention Survey who said they were looking to renovate, 72 per cent of these were budgeting up to $20,000.
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Twenty per cent had budgeted from $20,001 to $50,000, while just nine per cent had set aside over $50,000.
Belinda Williamson, head of corporate affairs at Mortgage Choice, explained that 15 per cent were looking to outdoor entertainment areas first. “This was among the top three most popular areas to renovate and followed upgrading the kitchen and bathroom, at 28 per cent and 27 per cent of respondents respectively," she said.
Of those looking to renovate, 54 per cent plan for major cosmetic renovation changes, including retiling or replacing cupboards, while 27 per cent look at structural updates such as layout changes. Nineteen per cent look at minor changes, such as a coat of paint.
"Once you have settled on a renovation plan, it's important to turn your attention to how you intend to fund the project. Depending on the scale of changes, there may be a number of different finance options to consider, such as a loan top-up, personal loan, line of credit loan or even a construction loan," Ms Williamson said.
"A good first step is to talk to a local mortgage broker to clarify your property goals. Following that, they can help you assess the nuts and bolts of the finance options most closely aligned with your needs and circumstances," said Ms Williamson.
She pointed to three tips for property owners – avoid overcapitalising, add up all your costs beforehand and have a good builder on board (make sure to ask them for quotes and testimonials).
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