Home Renovations: The Outlook is Positive
If you are considering a renovation for your home in Sydney or anywhere in Australia this year, you are not alone. Even though the current economy is weak and unstable, more Australians are planning on renovating in 2015. According to the Housing Industry Association (HIA) Residential Construction Outlook Report, the forecast for renovations in Australia is to expect growth in the range of about $26.98 billion, which is 1.3 percent higher than last year. In light of rising unemployment, reduced household income, and the lack of confidence in economic growth nationwide, the activity of building renovations is like a bright beacon in midst of it all.
Statistics and Comparisons
Home Renovations on the rise
The following will discuss a few key statistics and comparisons highlighted in the report to show the expected growth in renovations across the nation.
- Building growth– In the fiscal year of 2013 and 2014, an increase of about 11.6 percent was reported for dwelling commencements. This is in line almost exactly with the prior fiscal year. However, the numbers for home renovations are expected to increase over the next fiscal year. This increase should be good for builders looking for more work.
- Record growth – The amount of dwelling commencements in the fiscal year of 2013-2014 is, so far, the second highest recorded in Australia. There were 180,648 commencements in 2013-2014, second only to 187,000 in 1994. The HIA states that this is the first time since early in the 2000s (2002-2004) where this kind of consecutive growth has been seen.
- Building recovery – While it’s expected to have some substantial growth in building, builders in Sydney believe it could be stronger than it is. This is because many of the renovations are expected to be among current home owners as opposed to new home buyers.
The HIA has listed several other statistics and reports which you can find on their online site.
5 Trending Tips for Home Renovations
1) The right property – Location, size, and functionality are three important factors to consider when choosing the right property. Whether you plan to renovate for selling or to improve, it’s a must to buy the right property.
2) The right home renovations– An important objective when renovating should be to maximise the value of your property. Rooms like the kitchen and/or bathroom renovations will add value to your home and should also meet your lifestyle objectives.
3) Renovation percentages – Another smart tactic to use when renovating is to prioritise the percentages of where to renovate. For instance, if you are having your whole home renovated, a larger percentage should go into your kitchen as compared to your bedroom.
4) Go green with builders– Updating your home to make it green is a great way to add value while preserving the environment. Some of the things to consider include rainwater tanks, drip-feed irrigation, and solar hot water appliances.
5) Avoid DIY and know when to call in the experts – You may think you are saving money by doing certain jobs yourself, but if you don’t have the experience and it doesn’t go well, you are likely to spend more money paying a professional to fix it. In most cases, a home owner will spend less when they choose recommended painters, builders, plumbers, and other tradies for the job.
We hope this information will be helpful if you are considering a home renovation any time soon.
If you need help with your home renovation in Sydney or any other state, why not let our free Tradebusters tradesmen concierge assist you. You can tell us about your renovations jobs right here and a member of our team will contact you back shortly.