What are Australians Saving For?
Most home owners are prioritising saving for renovations over other household upgrades, according to a recent survey of our customers.
The survey found that 37 per cent of our customers are saving for a major renovation this year. From the 532 respondents, 23 per cent are saving to landscape their property and 30 per cent of Gen-Y respondents are saving to buy new appliances or furniture.
Generally we find the most common initiative you can take to increase the value of your property and create your dream home is to undertake a renovation. However depending on the size, renovations can be costly and require significant planning.
Many lenders look upon home owners who are borrowing for renovation purposes favourably because they are investing in their home and adding to its value. It’s often worthwhile negotiating with your lender for an additional discount or incentive to refinance your loan for the purpose of renovation because you’ll be adding value to the underlying asset and making a significant long-term investment in the property.
For Gen-Y’s, it was not surprising for us to see that they had higher interest in property renovation than most home owners as they commonly purchase with potential for scope. Additionally Gen-Y’s have higher interest in purchasing new appliances or furniture over landscaping their properties.
Often Gen-Y’s are buying smaller units which have undersized or no backyards and are much easier to renovate because of the size of the unit and it can be easier to tackle DIY projects in a smaller space. Additionally many first time buyers, who purchase with the intent of living in the unit for a short 6-12 month period, often undertake renovation projects to not only add value to the property but increase the likelihood of finding renters and maximizing returns.
The popularity of home renovation shows such as The Block are also heightening and encouraging many home owners enthusiasm to upgrade certain areas of their home. For many home owners purchasing the property is only part of their goal, putting a personal touch on the property by renovating a certain room or area, is essential to truly building a dream home.
If you are one of the many Australian’s considering renovations this year, speak to your Loan Market broker about your finance options.