news

Current market making renos harder

By Staff Reporter

With a substantial outlay expected on renovations across the country this year, investors must be wary about overcapitalising in a softer market, warns a renovation expert.

While renovations can be a profitable way to boost equity, Tradebusters’ Laorence Nohra warned that investors need to look very closely if they are to choose this path, particularly with a softer market affecting investors' ability to realise a profit.

The Housing Industry Association Economics Group Report, released in May 2013, predicted a national $29 billion outlay from homeowners across the country on renovations, proving it’s still a popular pastime for property owners.

Ms Nohra explained that despite this, “The most important question renovators need to ask is 'How can I save time, money and stress and still maximise profit in today’s market conditions?'”

A major factor impacting renovation profits is the stagnant, “or at best slow” property growth being experienced by many suburbs.

“With slower capital gains on houses and apartments, it has become much more difficult to generate the high profits we have seen from renovations in past market conditions. The next wave of renovators will need to be even more strategic and savvy to generate solid profits,” Ms Nohra said.

Considering all the costs associated and undertaking a true profit analysis is crucial for every investor.

Ms Nohra recommends investors look to their short- and long-term plans, know the selling price of the renovated product, select tradespersons carefully and think carefully about DIYing before they go ahead with any renovations.

Current market making renos harder
SPI logo
Thank you.

Your enquiry has been sent to a local Aussie Mortgage Broker.

We will be in contact with you shortly.
Opps.

error occurred.
Unfortunately Aussie cannot attend to your home loan related enquiry at this stage as you must be a citizen or permanent resident.
Do you need help finding the right loan for your investment?
What Aussie do for you:
  • Give expert mortgage advice to help you find great investment loan deals
  • Help you maximise return by lowering financing costs
  • Save you time and effort by helping with the paperwork
First name
Last name
Location
Mobile Number
Are you an Australian Resident?
promoted stories

Top Suburbs

Highest annual price growth - click a suburb below to view full profile data:
1.
BLUE BAY 49.18%
2.
PAMBULA 43.5%
3.
BERKELEY VALE 42.74%
4.
POINT PIPER 40.52%
5.
NORTH TURRAMURRA 38.12%