Westpac says: Aussies love renovating more than ever, but how are we paying for our home upgrades?
So you’ve grown tired of your current home, do you renovate or relocate?
Well according to Westpac’s Home Ownership report, the answer is to head straight to the grid paper with renovations increasing by 21% since 2015.
The research also found that the number of homeowners who’d consider selling has decreased by 11% and now sits at the same level as it did in 2015. This was because Aussie homeowners had other plans in mind, like getting married, having a baby or preparing for retirement.
“It’s no secret Australians love renovating, but those who are reaching key life milestones, such as getting married or having a baby, may also be increasingly choosing to renovate to avoid the stress and logistics of moving during an already busy time,” said Westpac Home Ownership Spokesperson, Andy Wright.
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“Growing families also seem to be purchasing properties that need some TLC, with plans to upgrade in the future when savings have increased.”
Wright also believes that the steady increase in renovations may be linked to the cost of having to move house.
“Taking into consideration the additional costs of buying a new home, including stamp duty and moving costs, homeowners may find that renovating is a more cost effective option, particularly if you work out a budget first, are a savvy shopper and are happy to undertake minor renovations such as painting or tiling,” Mr Wright said.
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And when it came to the generation leading the way in renovations, it was millennials who came out on top, with 87% already prepping their home for a makeover, followed by Gen X (78%) and baby boomers (77%).
Only last year, Mozo reported on the number of Aussies opting to renovate through the help of a personal loan.
So if you’re thinking of giving your home an upgrade, we’ve had a quick look into the Mozo database to find some of the best unsecured personal loan deals around, they include:
- G&C Mutual Bank Fair Rate Personal Loan, 5.99% (AA Rated Borrowers)
- Harmoney Unsecured Personal Loan, 6.99%
- SocietyOne Unsecured Personal Loan, 7.50% (Excellent credit required)
- MoneyPlace Unsecured Personal Loan, 7.65% (Excellent credit required)
But before you grab your hammer and gyprock, Mozo’s Property Expert, Steve Jovcevski has some advice to help get your renovations off to a smashing start.
“Before you renovate, take care of the basic stuff first. Make sure all the plumbing and electrical stuff works - that’s more important. But don’t ever do it yourself, always get a professional and remember to let your home insurer know you are renovating in case you need to upgrade your policy,” he explained.
And if you’d like to see more personal loan deals, head over to our personal loan comparison tool to compare over 180 loans.
* WARNING: The Comparison Rate combines the lender's interest rate, fees and charges into a single rate to show the true cost of a personal loan. The comparison rates displayed are calculated based on a loan of $30,000 for a term of 5 years or a loan of $10,000 for a term of 3 years as indicated, based on monthly principal and interest repayments, on a secured basis for secured loans and an unsecured basis for unsecured loans. This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.
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