Interest rate conditions prompt renovation finance surge

The lowest interest rates in 49 years have created good conditions for homeowners looking to undertake some form of property renovation, with finance for projects in the $20,000-$100,000 range becoming much more achievable and affordable.

And indeed we have recently seen an influx of homeowners looking to take advantage of the conditions and renovate by either topping up an existing home loan, or utilising the equity they have built up in their property via an equity release loan.

Although many people renovate for their own comfort and pleasure, there is also the option of renovating to improve a property prior to sale, thus improving the chances of a quick sale at a good price.

If you have recently completed a renovation, or will finish one in the near future, it could be very beneficial to you as a vendor to investigate the option of selling your property now, rather than waiting for the traditional Spring selling season to kick in.

The property market has remained incredibly solid during the past year, but in many areas there is a shortage of housing stock and an excess of buyers, thanks to the combination of the boost to the First Home Owners Grant and low interest rates. Also in the mix of buyers are those who have sold to first home buyers recently and are looking to upgrade, and investors too are coming back into the market. This has created a very solid buyer pool for your property.

Your mortgage broker can not only assist you with working through your finance options for renovating and arrange a home loan pre-approval for your next property, they also work closely with real estate agents and may be able to provide you with a recommendation for a good local agent.