With property prices and associated taxes and charges soaring, more people are choosing to stay put, and deciding to renovate their existing home instead of moving. David Wood, director and auctioneer with hockingstuart, says kitchens, gardens and bathrooms are what really matter to people.

The recent HIA Renovations Roundup showed that renovation spending is expected to increase by nearly $2 billion over the next few years, from $33.3 billion in 2016 to $35 billion in 2019.
 
Wood has seen the change first-hand in Melbourne’s inner bayside suburbs. Wood says homeowners in Melbourne's inner suburbs don't want to move away from the area.

"Homeowners in inner-city suburbs have established their lifestyles and routines based on the location of their home, which makes them hesitant to leave," he told SCHWARTZWILLIAMS. "For example, families with children might opt to stay put if their child’s school is in the area they’re currently in."

In addition, Wood said the costs associated with moving are prohibitive. 

"Median house prices are on the rise, and there is also stamp duty to take into account," he said. "There’s also the time associated with finding and securing the new property."

Melbournians are also reluctant to commute, said Wood. "Melbourne families are hesitant to commute longer distances with the increased traffic on our roads and overcrowded public transport."

Wood said because of these problems, and also because homeowners have often built up equity in their homes, it can sometimes make more sense to renovate than move.

The trend towards renovating is particularly strong in pockets of Melbourne where there are older homes, said Wood. "Melbourne’s bayside suburbs, for example, have a plethora of traditional Victorian and Edwardian homes established in the 1800s," he said. "These homes are primed for restoration and renovation."

"In other inner city pockets such as South Yarra and Prahran, and all the way around to Collingwood and Brunswick, the trend remains – plenty of period cottages in need of restoration. It’s these suburbs where people are investing money into improving their homes."

Wood said kitchens and bathroom renovations provide the most ‘bang for your buck’.
 
"It’s worth investing time renovating kitchens and bathrooms in particular," he said. "These rooms appeal most to prospective buyers and will really sell a home if they’re in tip-top shape."

Wood said improvements to gardens and outdoor areas can also add value to a home.

"Gardens play a big part in getting buyers’ attention," he said. 

"Often the laborious hours spent weeding or even installing a deck will be worth it in the long run."

"People renovating should also endeavor to create a lifestyle property," said Wood, and create "havens" for "easy relaxed living in an otherwise hectic world."

See also:

Advice for first-time renovators

Renovating a rental property

The deductions property investors often throw away