The next trend: renovating, not relocating

by Chris Lang on January 8, 2010

Painters Lately I had one of my little “AHA!” moments when I understood what 2010 and probably 2011 will be like in the property world. It happened when I read 2 reports – one by Archicentre on renovations and another by HIA on kitchens and bathrooms – and the things they were saying drew me the following picture.

It looks like a large proportion of Aussie population, known as baby-boomers, will be preferring to renovate their homes, as opposed to relocating. This, according to Archicentre, is their new superannuation strategy – a change that was caused by the global financial crisis and it’s consequences for the baby boomers. This looks like a reasonable strategy, especially with the estimated costs of moving being between $50,000 – $60,000 with all the property taxes and expenses added up.

And in any renovation project, what are the 2 major components? The new kitchen and bathroom, of course. Now this part explains the HIA report about Australian kitchens and bathrooms getting bigger and better. They say that in 2008/09 the average cost for a new kitchen / bathroom, including installation, was $14,000 and that people will be spending more in 2010 and 2011.

If we do the math, to replace both the kitchen and the bathroom will cost us $28,000 – compare it to $60,000 for relocating and you get a saving of $32,000. Of course there are other costs involved in a renovation, but still – this alternative looks much more attractive.

And now back to you – what do YOU think, renovate or relocate?

photo source

{ 3 comments… read them below or add one }

Hoboken Real Estate January 21, 2010 at 12:25 pm

In today’s market, it doesn’t make sense to move when you may already have the ideal place. You know the home and are best able to make the home renovations that will most improve the quality of life.

Reply

Conservatories February 3, 2010 at 7:31 pm

Great stuff, very informative. I am impressed ! I hope that your site will be there for a long time.

Reply

Cameron Robertson March 26, 2013 at 3:52 pm

My wife and I were also thinking of moving to a bigger home, when we decided to just renovate our existing place and maximize the area. We made some adjustments to spaces that we do not normally use and space that we would spend more time often. Of course, there is the issue of storage when we made a provision for items that we would only use once in a while. We were happy with our renovation and we did not have to leave our place, which is very much accessible to Manly Beach. And we saved a lot of money, too!

Reply

Leave a Comment

Previous post:

Next post: