In the last couple of years, we have seen a lot of people refinancing their home loans through our Rockingham office. Many do this to take advantage of record low interest rates. Many want to “pull” equity out of their homes and use it to invest. Of these, we have seen a growing portion use their equity to finance renovations or additions.
Recently, the Westpac Renovation Report confirmed what we already know: more and more Australians are choosing to renovate their homes. Compiled by Sweeney Research and CoreLogic RP Data, the report traces housing trends for September 2013 through August 2014. The most relevant statistic: renovations are up 147% since August 2010.
From 2002 to 2009, home renovations actually declined, so this rise comes as a surprise to some. The rise in renovations has nearly mirrored the rise in home prices. That is not seen as a coincidence by those in the industry.
In August 2014, over $600 million worth of residential conversions and renovations were approved. This is up 40% from December of 2013. While 64% of those renovating their homes used their savings for the renovations, 26% of those between the ages of 18-54 restructured their home loans to fund their renovations.
What it Means to You
We know that a lot of people don’t want to go through the hassle of buying one home, selling another and moving. That has caused a lot of people who want larger homes or more modern homes to turn to renovating their current homes. This increases the home’s value and can turn your current home into your “dream home.”
For those who have enough equity in their homes to finance renovation, it makes perfect sense to refinance their loans and renovate their homes. At Smartline Rockingham, we can take a look at your current situation and tell you if you are qualified to refinance your home loan. Your current home could become your dream home.
Call (08) 9527 1800 to learn more.