Cost of renovations

Home renovations getting more expensive

As we mentioned in ONE OF OUR POSTS LAST YEAR,  one of the trends that emerged from the pandemic lockdowns of the past two years was an increased interest among homeowners in home renovations.

Perhaps it was the additional time we had to think about improvements to our home, but data showed that while we were spending in our homes there was a distinct spike in interest in home renovations during 2020-2021.

If you are one of the many homeowners considering make some home improvements, particularly if those renovations are at the more substantial end of the scale rather than purely decorative, now might be an ideal time to check your figures before you get too far into the project.

The latest Construction Cost Index from Corelogic, which was released during the week, showed that construction costs had increased by 9 per cent nationally over the past twelve months. This was the highest annual growth rate recorded since the introduction of the GST back in 2001. The figures suggest that a large part of the cost increases is being driven by rises in the price of timber, metals and imported fittings.

This means that even if you did get a full quote for your project as recently as late last year, those figures are likely to have increased by several percent. When you add in the impact of labour shortages, higher fuel costs and material shortages, the chances are your renovation will not only

Of course, these cost increases will also have an impact on home insurance, as rising replacement costs will mean that everyone should be reassessing their level of cover to ensure that they are not under-insured.

The key message is that if you are rethinking whether home renovations are the right move for you, an obligation-free chat with the team at Ian Reid Buyer and Vendor Advocates could save you a lot of stress. Why not give us a call this week on 9430 0000?

You will also find lots of helpful tips on selling your property in our free booklet, “Fatal Real Estate Traps Exposed”,  so feel free to download a copy while you’re here.