I've been reading of late that there has been an increase in building work in Australia, despite the fears of GFC2 and an oncoming credit crunch. I had thought it was for totally new homes, but according to the Aussie Bureau of Statistics, most of the construction work has been for renovations, and NOT for new homes.
At a national level, it seems that new home building has been on a downward trend – Not so good in my opinion as it continues to limit the supply in the real estate market, perpetuating the unaffordability of new homes.
Your thoughts?
Traditional in hard times for people to save up and renovate instead of repurchase.
Not unusual.
Renovating is a great, low risk way for people to add value to their property and make money as a result, even in these 'hard times'.
The trick however, is doing it properly and not over-capitalising of course.
I have plenty of clients renovating-for-profit at the moment. Not everyone is just sitting on their hands thank goodness.Having said all that, if not many new homes are being built, then builders are in short supply of work which means now would theoretically be a great time to get some sharp pricing and (hopefully) a quick turn-around.
Jane – Hotspace | Hotspace Consultants
http://hotspaceconsultants.com/home
Email Me | Phone MeRenovating for Profit specialist
xdrew wrote:Traditional in hard times for people to save up and renovate instead of repurchase.Not unusual.
Yes. Good to find a suburb where people are doing this to older housing right next door to a highly gentrified suburb with much higher prices, that way the renovation dollars can help your capital growth
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