Aussie families choosing to renovate rather than move: Westpac survey

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Apr 16, 2018

Aussie families choosing to renovate rather than move: Westpac survey

Owners are choosing to stay put, rather than sell up and move, in part because the costs associated with buying and selling are so high.

Image Jarmoluk via Pixabay.

Westpac suggests doing some of the simple renovation work yourself to save on costs. I don't think I'll rush into it.

Since 2015, there has been a 21 per cent increase in the number of Australian owner-occupiers who have renovated their home.

The Westpac survey of 1,000 home owners and first-home buyers, also showed the number of owners who are considering selling their home was down 11 per cent from last year, returning to the level of 2015.

Recent data from Master Builders Australia supports the findings, with forecasts that $44 billion worth of spending on renovations will occur over the next five years.

Home owners who are getting married or having a baby, and growing families have the highest rates prioritising renovating.

The generational breakdown of home owners who have renovated since 2015, are currently renovating, or are looking to renovate, is as follows:

millennials 87 per cent
gen Xers 78 per cent
baby boomers 77 per cent, and
those approaching retirement 33 per cent.

Andy Wright, Westpac's home ownership spokesperson, said there could be a number of reasons home owners are opting to renovate rather than move.

“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," he said.

"Growing families also seem to be purchasing properties that need some TLC, with plans to upgrade in the future when savings have increased," said Wright.

Wright said the high costs of buying and selling could also be pushing home owners choose renovating over moving.

“Taking into consideration the additional costs of buying a new home, including stamp duty and moving costs, home owners may find that renovating is a more cost effective option," he said.

Westpac's tips for home renovators

1. Plan meticulously, and budget for a certain amount of cost overruns.

2. Do the prep work yourself.

3. For major work, such as electricals and plumbing, it pays to use an expert.

4. For minor works, such as tiling or painting, see if you can do the work yourself.

5. Shop the sales for fixtures, fittings and furniture.