Published on January 25th, 2013
Gen-Y prioritises renovating over gardening
Homeowners are prioritising renovating their piece of real estate over improving gardens or purchasing new products.
This is according to a new survey from Loan Market found, which found 37 per cent of respondents are looking to spend their saved up cash on redoing a portion of their home.
Corporate spokesperson with Loan Market Paul Smith said that 30 per cent were saving for a new appliance or piece of furniture, while only 23 per cent were looking to overhaul their gardens.
He commented: "In most cases, the most common initiative you can make to increase your property value and create your dream home is to undertake a renovation.
"However depending on the size, renovations can be costly and require significant planning."
Mr Smith added that many lenders looked favourably upon renovators as they will be adding value to the property.
"It’s often worthwhile negotiating with your lender, an additional discount or incentive to refinance your loan for the purpose of renovation because you’ll be adding value to the underlying asset and making a significant long-term investment in the property," he said.
The spokesperson said that Gen-Y homeowners typically renovate more than others because they purchase with the vision of expanding and improving. The research also found that typically the newest generation of homeowners do not put a high priority on furniture and appliances.
As younger people generally buy smaller homes or apartments, the theory is that they are more prone to renovation because a smaller space means a quicker and easier upgrade
This fixation with facelifts is also to maximise rental rates or returns if owners are looking at either finding tenants or selling after a year or so.
Renovation fever can also be attributed to popular DIY shows, Mr Smith concluded, as young people are great consumers of television.