Home improvement for the money-wise Australian
The past two years have seen a dramatic rise in home renovations which has many Australians asking: Can I get a home renovation loan and how?
It makes perfect sense too. Our community bubbles shrank down to the size of our living space. And so, we started to think about how we can elevate our houses into the homes we strive for.
The generational spit
Millennials, those currently aged between 25 to 40, are the key drivers of the renovation revolution.
An estimated 73% of millennials are currently planning to, or already are, renovating their homes, and 34% of baby boomers are doing the same. Combined, the number of renovation projects in Australia is estimated at around 5.9 million.
That’s a lot of capital needed across the nation.
The six principles to include in your home renovation loan budget
To help you decide how much you’ll need to make your renovation a reality, we’ve put together six basic renovation principles. These are critical to consider when making your application.
1. Factor for budget blowouts
Projects that have had little research and costings have a bad habit of going over budget. Sometimes way over. Renovation budget calculators such as Real Estate Investar are a great resource to begin your budget.
Handy tip:
Budget blowouts are often the result of not recognising or factoring that any changes will add to your existing costs. Costs like additional contractor planning time, materials and so on.
2. Take the time to find a reputable builder
We seem to always know someone, or a friend of a friend who knows someone, who has the contractor or tradie from hell. We know the majority are fine but to make sure you’re dealing with the true blue, it’s incredibly important you find a builder/contractor with a good reputation.
The cost of bad work is more than just more money from your loan, but time too.
Handy tip:
Pre-approval helps you lock in your funds and interest rate while you finalise your contractor.
3. Expect surprises
There’s nothing that’ll cause you to hit the brakes faster than a nasty little surprise like a mysterious water pipe in the back garden, unseen water damage in your drywall, or dodgy shortcuts previous owners may have left you to discover.
Ensure to bring in a building inspector who will give the property and blueprints a good overview and list out things you need to look out for. It’s a small but oh so valuable cost to your project.
4. Don’t overspend
Understand what it means to renovate elements of your home that bring added value to your property.
The key is to spend in the right places. Consult a real estate agent to compare the costs of renovating against other houses in the area and maybe you can even gain some inspiration for your renovation from their experience.
5. Book jobs in the right order
They say timing is everything, and when we’re talking deposits and labor costs, this very much applies to your home renovation.
If you’re a type-A personality and you live your life with daily to-do lists and balance monthly personal spending spreadsheets, you might be able to manage on your own. But for many, having a schedule or consultant to manage various tradies is going to save you in the long run.
The last thing you want is the landscaping team showing up while the backyard is still half dug up.
6. Budget for landscaping
The final ‘ribbon and bow’ jobs can sometimes be forgotten in the midst of the logistical chaos of any renovation.
Handy tip:
Consider what jobs require certain access and tools and try to group them within the same time frame to avoid prolonged equipment hire and additional labour costs.
Can I get a home renovation loan with OMM?
OMM home improvement loans access for Australians with all credit types and ideal for anyone seeking to renovate their home. Hailed with awards from Canstar, RateCity, and Mozo for excellent credit personal loans, outstanding value, and expert choice 2021 take comfort in knowing you have access to one of Australia’s best lenders.
Our personal loan services are available for eligible Australian permanent residents or citizens over the age of 18-years-old with no defaults or bankruptcy.
Get started with our pre-approval service which has no impact on your credit score and will show you just how easy it is to get the motorbike of your dreams.
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