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The financial turmoil of 2009 will see more Australians stay put and spend more money on renovating their homes to improve their financial position by adding value to their major asset – the family home, says Archicentre, the building advisory service of the Australian Institute of Architects.
Archicentre Managing Director, Robert Caulfield said Archicentre has recently experienced an increase in the number of people seeking renovation advice as home owners shy away from selling and buying or ordering new homes.
”Home owners with tight budgets will move to turn the $50,000 to $60,000 of dead money spent on taxes, fees and charges to move into renovation investments where they gain in wealth and lifestyle with new kitchens, bathrooms, bedrooms, outdoor living areas or home theatre extensions,” Mr Caulfield said.
Archicentre cites the most common renovation requests as a fourth bedroom with en suite and walk in wardrobe, family room and updated kitchen, costing around $150,000
“Renovation will be further fuelled by the historic low interest rates making cheap money available to fund
renovations and increase returns in the long term.”
Mr Caulfield added: “For many cashed up baby boomers the renovation of the family home is the last roll of the dice to substantially increase their wealth by investing in the family home which becomes a tax free investment when ultimately sold. With a quarter of Australia’s population expected to be 65 or more by 2047, the use of equity in the family home to boost retirement funding, renovation will become an important national wealth creation strategy as well as underpinning jobs in this difficult period.”
For more information about home renovation visit www.archicentre.com.au