The Renovating Revolution

Australians have been hit by a renovating revolution, which we are seeing it driving the economy, creating extra jobs and adding value to real estate.

Over the last five years, property prices have been on the rise and it is no coincidence that home owners DIY-ing has also been on the up. Naturally, vendors want to achieve the best price that they can when selling their asset and they know that a lick of paint, some expert styling and even a bathroom or kitchen makeover will help sell at a top market price.

The success of Channel 9’s “The Block” reinforces that a home renovation could be the key to a successful sale. Australians countrywide have been inspired to take on their own home improvement projects, as statistics show more home owners spending more money renovating or rebuilding their homes than at any other time. It may be because home renovation is the only investment that you can make in Australia that is tax free. So Australians are taking the opportunity to invest in their principal place of residence or indeed their investment properties as it is the best way to increase their net worth - especially with the property market being a good market to invest in. 

It is also creating tens of thousands of extra jobs right around the country; such as carpenters, plumbers, electricians, painters, labourers, Architects, interior designers, engineers and landscapers amongst others, not to mention the hardware stores and material suppliers are benefitting from this trend. 

Fuelled by a strong property market, the home renovation revolution is likely to continue as Australians demand a higher standard of living all centered on the home. More Australians are entertaining in their own home today and the value of privacy and convenience plays a major role in how people interact.

Investors are not as keen to renovate their investment properties as they are to renovate their own home. Yet the rewards for renovating your investment property can be very, very high.

Case Study – Investment Property Renovation Pays Off with 24% ROI

Recently one of our clients undertook a full renovation on his 2 bedroom apartment in Randwick under the advice of N G Farah. The property in Avoca Street was in original condition and comprised of two bedrooms, a laundry, balcony, garage and was close to all amenities. It was achieving $560.00pw in original state. After our client spent approx. $50,000 on renovations including a new kitchen and bathroom, he achieved an additional $220.00pw rental which is more than $12,000 per year - an excellent return on his $50,000 renovating investment.