Our company is also finding strong demand for large executive older style apartments in inner city areas which can be renovated. Many of these older style apartments can be purchased near land value and therefore are prime for renovation
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(PRWEB) March 19, 2007
Rising land values is encouraging more property owners to renovate their homes in the more affluent suburbs of Perth according to Brett Wilkins, Managing Director of Coldwell Banker Pro Property.
Mr. Wilkins said that the latest ABS figures show that in the many areas of the Western suburbs of Perth, expenditure on home renovations surged by more than 35% during the past financial year.
“In the Town of Cottesloe, for example, expenditure on home renovations surged by 68% to over $10 million during the last financial year.
“The greatest expenditure on home renovations during the last financial year in the Western suburbs was in the Town of Cambridge which totalled $18.39 million representing an increase in expenditure on home renovations of nearly 40% compared to the 2004/2005 financial year.
Home Renovations Expenditure:
Area 2004/2005 2005/2006
Vincent (T) $10,490,900 $14,491,400
Subiaco (T) $3,472,300 $6,073,700
Peppermint Grove $3,394,100 $3,088,900
Nedlands (C) $12,823,200 $16,770,300
Mosman Park (T) $6,145,300 $9,012,300
Cottesloe (T) $6,167,100 $10,365,900
Claremont (T) $2,872,300 $2,535,500
Cambridge (T) $13,185,300 $18,395,800
“Land values in many areas of the Western suburbs, in particular, have surged during the past two years and this is encouraging more home-owners to renovate their homes.
“With the median price of a home in many Western suburbs now well above $700,000, many home-owners are now undertaking significant renovations to their properties.
“Coldwell Banker Pro Property is finding that this home renovations trend is more apparent in lower priced areas in the Western suburbs. Many of these home owners are deciding to renovate their existing home rather than upgrade because of high cost of stamp duty. For example, the stamp duty on purchasing a home worth $1 million is nearly $50,000.
“As a result of this trend, there has been very strong demand for character homes in these areas that can be easily renovated.
“Our company is also finding strong demand for large executive older style apartments in inner city areas which can be renovated. Many of these older style apartments can be purchased near land value and therefore are prime for renovation," he said.
Mr Wilkins said that anyone who was considering undertaking a home renovations project should consider the following points:
- Ensure that that the underlying land value of the property is high and will continue to rise to ensure that you do not run the risk of over-capitlise the property. You can do this by comparing the property you wish to renovate the value of similar properties which have sold in the local area recently.
- If it worthwhile undertaking a structural inspection of the property by a licence builder to ensure that there are no major structural problems.
- Kitchen and bathrooms should be key areas for renovation of an older home as these areas traditionally provide the highest returns on expenditure.
- Considering improving the outdoor living areas because of the growing importance of lifestyle living in the current housing market.
- If you are renovating a character home, you may have to employ specialised tradesmen to ensure that renovations are in keeping with the original home.
- Ensure that you have enough finance to properly complete the renovations project.