Australia enters the renovation age

Home-owners are ramping up the worth and lifestyle of their castles, as Australia enters the renovation age.

According to research from Westpac, more than a third of homeowners are planning to renovate over the next five years, with an average of $80,000 spent on updates.

Overall, the Housing Industry Association predicts Aussies will spend $38.5bn on home improvements this financial year, up almost $2bn on the previous 12 months.

The trend puts paid to fears of a downturn, with HIA chief economist Tim Reardon now forecasting a COVID-19 “bump”.

More than a third of that spend will be in NSW – the highest in the nation with the majority saying they were influenced by home improvement shows.

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First-home buyers are dominating the market

Using data from the Australian Bureau of Statistics the HIA has found that DIY-ers and small-scale professional renovators spent $14.4bn at hardware, building and garden supply retailers from March to September. That figure is up almost $3bn, or 26 per cent, year-on-year.

The most common changes people are considering adding is a home office and improvements to bathrooms, kitchens and outdoor areas.

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Buy now pay later comes to real estate

One in 10 Aussies struggling to pay their mortgage

Westpac managing director of mortgages Anthony Hughes said while the restrictions imposed due to the COVID-19 pandemic had “sparked new ideas” on how spaces could be used, the shift in work-from-home arrangements and family needs would sustain them in the long run.

Additional reporting from Nathan Mawby.

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