Media releases

Australians choosing to renovate and improve rather than move

 

29 November 2014

  • Australian home owners who have renovated spent an average of $47,984 on their renovation
  • Three in five home renovators put aside an extra 29 per cent of their budget as contingency
  • Increasing property value, increasing comfort and updating style are the most common reasons for renovating
  • 80 per cent of renovators thoroughly plan for their renovation

The Westpac Renovation Report has found that Australian home owners are opting to improve their current home rather than moving, and spending an average of $47,984 renovating their property.

The research revealed the top motivations for renovating are to make the home more comfortable (64 per cent), update the style of the property (55 per cent), and increase the value of the property (41 per cent). Of those who renovated their property to make extra room (16 per cent), almost three quarters of these respondents chose to renovate as they wanted to stay in the same area.

The Westpac Renovation Report also found that the perceived difficulty of renovating is not always the same as reality; with those intending to renovate for the first time more likely to have a negative perception of the renovating experience than those who have already been through the renovation.

“While many Australians are excited by the possibility of renovating their home, there is a heightened perception of difficulty - perhaps from friends or family stories, or the testing circumstances seen on popular reality renovation shows. Although renovating can sometimes be a stressful experience, our research found that just over half of all renovators agree that renovating is fun and enjoyable.”

“When it comes to financing their renovation, 19 per cent refinance their existing home loan, and 35 per cent of this group are influenced by the low interest rate environment. This suggests that many renovators are using the equity in their property and current market conditions to move closer to living in their dream home,” said Ms McGrath.

The report also found that 80 per cent of renovators thoroughly plan and prepare for their renovation, with 65 per cent preparing a budget and 47 per cent gathering renovation advice from the internet, friends and family.

“While many people perceive timelines and budgets as some of the most challenging aspects of a renovation, these can actually be simplified during the planning process. In addition to speaking to friends and family about their experience, it is recommended to speak to a Home Finance Manager, who partners with customers to plan their budget and finances ahead of time, in order to avoid unnecessary stress during the renovation,” said Ms McGrath.

For more information about financing your renovation, visit: www.westpac.com.au

Notes to editor

Key findings from The Westpac Renovation Report:

  • One in ten (10 per cent) Australian property owners have renovated in the last 24 months
  • Of those Australians who have renovated their home, the average spend is $47,984 per renovation
  • Three in five home renovators put aside an extra 29 per cent of their budget as contingency
  • The top motivations for renovating are to make the home more comfortable (64 per cent), update the style of the property (55 per cent), and increasing the value of the property (41 per cent)
  • Of those who chose to renovate their home to make extra room (16 per cent), almost three quarters (71 per cent) did so as they wanted to stay in the same area
  • One in ten (10 per cent) renovators were inspired by popular renovation TV shows
  • 19 per cent of renovators refinancing their home loan to fund their renovation
  • 35 per cent of those who refinanced their home loan, were influenced by the low interest rate environment
    Half of renovators (51 per cent) agree that renovating is a fun and exciting experience.
  • Those who intend to renovate for the first time are more likely to have a negative perception of the renovating experience.
  • 65 per cent of renovators prepare a budget for their renovation
  • Just over a quarter (26 per cent) of Australians engage in extensive planning ahead of their renovation. 57 per cent do ‘a lot’ of planning
  • On average, people renovate 3 rooms at a time, with kitchens and bathrooms proving to be the most commonly renovated rooms

About The Westpac Renovation Report

The Westpac Renovation Report was commissioned by Westpac and powered by Sweeney Research and RP Data.

Sweeney Research surveyed 700 Australians via the Research Now Online Panel, divided into renovators (own property, have spent more than $10,000 on renovations in the last 24 months) and intenders (own property and are intending to spend over $10,000 on renovations in the next 12 months). The survey was conducted between 10 September and 17 September 2014.

RP Data compiled Australian Bureau of Statistics dwelling approvals data from 2004-present, using projects where the value of work done was at least $10,000.