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Renovations industry set to sky rocket, says HIA

By Kevin Kelly

If you've never before considered renovations, now might be the time, as Australia's property industry looks set for a major boom in this field, according to the Housing Industry Association.

In its 'Renovations Roundup' release, the HIA claims that more and more people will be trying renovations for their homes.

Why are home owners and buyers looking to renovate?

The upcoming increase in renovations, says HIA, is down to the perfect mix of real estate conditions.

Shane Garrett, a senior economist for the HIA, explained that the growth of dwelling prices, low interest rates, and favourable labour market conditions are all making it a great time to consider renovating.

Additionally, "with new home building set to fall back over the coming years, there will be increased reliance on home renovations activity as a source of demand within the industry," he said.

There will be increased reliance on home renovations activity as a source of demand within the industry.

There will likely be renovations activities in two key areas. In the first, current home owners may look to invest in renovations instead of purchasing a new home. This way, they may obtain a property better suited to their needs, such as one with a two-car garage, a second bathroom, or even an additional bedroom. The second key area of renovation growth may be with home buyers who purchase an older property in order to do it up.

With weaker levels of new home building on the horizon, the HIA expects renovations activity to pick up some of the slack.

"With annual home renovations expenditure topping $31 billion, the sector packs quite a punch across the Australian economy," said Shane.

Benefits of renovating your home

Naturally, a home renovation will help turn your existing property into something even more suited to your needs and tastes. Rather than selling and purchasing your dream home elsewhere, a renovation can help you stay in one place and put that effort into plans and action within your home.

Additionally, there will likely come a time when you do decide to sell your property. When this time arrives, you may be able to acquire a higher asking price thanks to any upgrades or improvements you've made to the property.

Even though the HIA has predicted a strong renovations boom for these reasons, Australian population expert group .id shows that home improvements have already been heavily on the rise. Renovations dollars requiring approval were $7.2 billion in the 2014-15 financial year, double what it was in the year 2000.

If you're on the hunt for a property in Bunbury that you can renovate, the knowledgeable team at Ray White can help you find the perfect home.

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