Tasmania home renovation payoff: Suburbs turning $5K into a fortune

Tasmanians are spending thousands on renovations to boost the value of their homes. See where and how much they could make.

Exclusive: It’s the silver lining of lockdown — homeowners whose four walls closed in so much they decided to renovate them are inspiring a multi-billion dollar tradie boom.

New data from Australia’s largest online tradie marketplace hipages reveals nearly 30 per cent of property holders were inspired by lockdowns to make upgrades, which could substantially boost values.

And in the coming six months, they are tipped to pour a collective $34 billion into trades work — money they would have spent on holidays, entertainment and dining had they not been cooped up inside.

The report found almost half of those undertaking work planned to spend an average of $5000.

Forty per cent were aiming to add more than $10,000 in value to their property, however only 23 per cent planned to spend that much on renovations.

Tasmania’s busiest suburbs for renovations include Hobart, Lenah Valley and Launceston.

Some tradies are booked out until next year. Pictures: Jack Tran

Lifetime Homes Tasmania managing director Peter Overton said that while there was high demand for builders, not all were booked out.

Mr Overton said his company had capacity for one or two more major jobs in 2022.

“Our experience is that we are seeing more enquiries this year for renovations,’’ he said.

“People are investing in their homes to enjoy them more or make the home more functional.”

Mr Overton said there was a shortage of timber and some other materials, with some products difficult to get into Tasmania from the mainland in a timely manner.

Mr Overton said the best tips for people considering a building project were to carefully select products, set a realistic budget upfront, and find a builder that is available that suits the type of project.

REA Group expert Cameron Kusher said that government grants and incentives for major renovations had also driven the high volume of renovations.

“Also, despite low mortgage rates, it has been difficult to buy with demand outstripping supply,” he said.

“As a result people have chosen to undertake renovations to their current home rather than try to move.”

Almost half of homeowners surveyed by hipages, which is part owned by News Corp, said they would prioritise the kitchen (24 per cent) or bathroom (20 per cent) for renovations to add value to their home.

Hipages CEO Roby Sharon-Zipser said on average Australians saved around $1183 a month during the lockdown period, with 64 per cent planning to put these savings towards work on their home.

“Homeowners that have had to pause projects or put off starting projects due to the lockdowns are now urgently looking for their dream renovations to be completed,” he said.

“We’ve also realised that how we use our homes has changed and we’ve spent time thinking about how we can make improvements.”

Roby Sharon-Zipser, Hipages CEO and Co-Founder.

No matter where you begin, experts say a quick — and sometimes even inexpensive — renovation can lift the values dramatically.

Foxtel’s Love It or List It’s real estate expert, Andrew Winter, said renovations should always start with overall structure, roof, windows, wiring and the layout.

He added that this should then be followed by an upgrade to wet areas, kitchens and bathrooms, followed by decorating and flooring.

“Selling it is about the property overall, so every main area has to be addressed,” he said.

“There’s no point upgrading to a luxury kitchen then having no money left to address the rest of the home inside and out.

“For living in, it is about priorities. If you plan to stay long term, do projects as you can afford them. A kitchen is a big-ticket item. A garden you could use as a designer and then the rest you do it all yourself.

TV Host Andrew Winter.

Mr Winter said that these small changes could add anywhere from $20,000 to $100,000 on the final value to your home, depending on the property’s size and location.

“Spending say $25,000 on a new kitchen on a $400,000 home may only add $20,000 to the value in the short term,” he said.

“Whereas in the luxury unit a $60,000 kitchen upgrade may add $100,000 or much more. Right now, any of these upgrades should at least get your money back, if not more.”

Top suburbs for renovations since October 1, 2021

1. Hobart
2. Lenah Valley
3. Launceston
4. Devonport
5. Kingston
6. Howrah
7. Lindisfarne
8. Berriedale
9. Claremont
10. Glenorchy

Top jobs posted in Tas since October 1, 2021

1. Handyman
2. Plumber
3. Builder
4. Painter
5. Garden maintenance
6. Fencing
7. Electrician
8. Concreting
9. Roofing
10. Cleaning