Expert says improvements could enhance a home’s characteristics and increase its value
New Zealand is a nation full of home improvers – with a lot of Kiwis choosing to renovate their homes rather than move, according to new research.
The research, which surveyed more than 800 homeowners, revealed that 37% of property owners have undertaken renovations in the past two years, 20% are currently renovating, while 28% are considering renovating their homes in the next 12 months.
When asked why they want to renovate their homes rather than move, 18% of the respondents said moving is impractical or too much effort, 17% said they can’t afford to move, and 17% said there were only a few homes left in the market that they’re interested in buying.
Shane Howell, chief experience officer at Westpac NZ, commented that improvements can be a great way to enhance a property’s characteristics and therefore increase its value.
“Kiwis have always loved a renovation job, but what we could be seeing right now is more people taking advantage of low interest rates to fund home improvement rather than selling and entering a challenging housing market,” Howell said.
“A range of funding options may be available for renovators, including topping up their existing mortgage, or redrawing on a revolving home loan.”
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When asked why it’s important to renovate their property, 74% of the respondents said they just want to improve their home, 47% said they want to increase their home’s value so they can sell it, and 37% said they just want to change their home’s aesthetics.
Meanwhile, 27% of homeowners said they had purchased property that needed renovations, while 24% admitted that they just simply enjoy DIY.
Howell advised homeowners interested in renovating to have a clear goal around what they’re trying to achieve.
“If the aim is to increase comfort, energy efficiency, or make your home more liveable, make sure you can achieve this on your budget. If your aim is to increase value then it would probably be a good idea to seek advice from a valuer beforehand,” he said.
