A drop in stock and rising prices is forcing many homeowners on the upper north shore to look to the long term and renovate
AS property prices and the cost of selling continue to rise, more homeowners are turning to the toolbox to tailor their existing properties for long term growth.
AS both property prices and the costs associated with selling continue to rise across the city, an increasing number of homeowners are turning to the toolbox to tailor their existing properties to perfectly their own specific needs while maximising their assets for long term growth.
Further fuelling this widespread trend is a record decline in stock levels, including across the upper north shore, according to Scott Farquhar of McConnell Bourn.
“The cost of moving is significant so we have seen many owners staying put and renovating or extending to suit their changing family needs, but I think this has also been caused this year due to the lower level of homes being available for sale,” he said.
But in order to successfully achieve a positive outcome for the long term, carefully and accurately planning what you are trying to achieve with the space and how it will suit you and your family’s needs is essential.
“Make sure you seek quality sound advice from respectable and trustworthy architects, project managers, tradespeople — ideally those who have done similar renovation work in the same council municipality,” he said. “I know of too many horror stories whereby what was expected versus what occurred were the polar opposite.”
When David Perryman and his wife Amanda moved into what was then a “little crappy house” at 5 Toongarah Rd, Roseville, 13 years ago, they had a grand plan to transform it into their dream home and ergo increase the property’s value in more ways than one.
“We bought the house with the vision of being here for 20 to 30 years here and seeing our kids grow up, so everything we did was in mind for us and not for reseal, albeit that’s always a motivation,” Mr Perryman said.
“Anybody that buys this house will definitely cash in on the fact that we didn’t skimp on what we wanted to do, because we wanted everything to be the bee’s knees so we could enjoy it ourselves.
“The other motivator for me personally was to add value to the street and community at large.”
After a false start on a previous renovation plan, the couple knew that planning was key.
The first thing they did was landscape the block before making the house more liveable by replacing the carpet, repainting it and adding in a new bathroom and laundry. But they always knew there was more to be done.
“Five years ago, we basically demolished the whole rear of the house bar the two front rooms and laundry and bathroom we’d done,” Mr Perryman said. “We made it completely open-plan throughout the back, we maximised the available living space downstairs and put four bedrooms and two bathrooms upstairs.”
The result is a home that has Mr Perryman believes has increased at least four times in value.
With another project on the cards, the home will be auctioned on Saturday, November 12 through McConnell Bourn Lindfield agents Scott Farquhar and Toby Markos.
It seems that buyers across the city have caught the renovation bug, with Sydneysiders leading a nationwide trend where homeowners are renovating to turn their own properties into dream homes, rather than upgrading into new ones, recent studies have found.
The 2016 Houzz & Home report surveyed 14,000 respondents in Australia, revealing that a significant 56 per cent have renovated their homes in 2015 and a further 49 per cent are planning renovations in the back half of 2016.
This coincides with data from CoreLogic, which shows new home listings are down 17 per cent on this time last year and the number of yearly sales down 18 per cent.
Close to half of those (46 per cent) looking to add value to their own homes, were driven by reluctance to leave. Around a third (33 per cent) were attached to their neighbourhood and 29 per cent were motivated by money; believing it cheaper to reach for the hammer than to sell up and find somewhere new.
Unsurprisingly, younger owners proved the most driven by financial concerns, with 36 per cent of millennials citing affordability as the main reason to renovate.
“While the generation of homeowners between the ages of 24 and 34 comprise a small share of the homeownership population, we’re finding they are quite active when it comes to home upgrades,” Nino Sitchinava, principal economist at Houzz, said. “(They) are eager to make their homes their own.”
The survey found that kitchens were top of the list for renovations and additions (26 per cent and 6 per cent respectively), followed by living rooms (25 per cent and 7 per cent), non-master bedrooms (20 per cent and 4 per cent) and master bathrooms (19 per cent and 4 per cent).
Separate data from hipages showed the demand for work on bathrooms and kitchens had grown more than any other renovation over the past year.
The trades service hub noticed a 20 per cent increase in requests for bathroom work since July 2015, while demand for kitchen renovations increased 5.6 per cent.
“The average cost of a budget kitchen is between $10,000 and $20,000,” Donna Hole, hipages head of trade service, said. “By saving on materials, appliances and some installation costs, you can have a beautiful new kitchen on a budget.
“The best way to save money on a bathroom renovation is to replace or reface your plumbing fixtures rather than move them to another location.”
TOP TIPS TO ENSURE EVERYTHING IS SHIPSHAPE BEFORE DIVING INTO THE DEEP END
Donna Hole, Head of Trade Service at hipages, says there are a number of things to take into account when embarking on home renovations.
“When planning your renovation, it’s best to get quotes from a few different contractors before making a final decision so you can compare them and make sure you’re getting a good deal.
“Keep in mind that quality materials cost more and skilled contractors often charge more than less experienced ones.”
Here are the top tips you should take into consideration before you begin your renovation:
DA approval
It’s important to check if your renovation requires you to submit a development application. There are five simple steps to take when inquiring and submitting a development application; speak to your council, find out what your fee will be, find more sources of information, consult your neighbours, then submit your DA and supporting documents.
Research
How much will your renovation cost? You’ll only know by doing your homework to gauge labour and material costs. There are many handy online tools to help you estimate costs, and understand what you need to account for. Only start planning your renovation when you have drafted a clear, itemised budget … all the way down to the price of power points!
Budget
Only spend up to 10 per cent of the property’s value on your renovation. That will provide you with plenty to play with, without going beyond your limits and sacrificing the profit margin. So after you’ve done your research, devise a budget you canstick to for the work.
Ask the experts
After your initial research, approach the professionals who can provide proper pricing guides. Have a building inspector assess the property and stipulate any repair, rewiring or essential structural work. Have an architect draw up your renovation plans and ask at least three builders to outline how much it will cost.
Originally published as A drop in stock and rising prices is forcing many homeowners on the upper north shore to look to the long term and renovate