According to Stuff’s NowNext survey, Kiwis cooped up in lockdowns during 2020 has inspired more than 27 per cent of homeowners to want a renovation, while just 17 per cent said they were thinking of re-locating.
The trend is borne out by the Fresh Real Estate Institute of New Zealand data that shows shrinking housing stock, down to 15,000 properties for sale in June compared to more than 20,000 at the same time last year.
According to the survey, homeowners opting to renovate and hold on to their current property are playing a significant part in low stock levels. ANZ economist Sharon Zollner told TV news that renovations are up because the borders are closed, so people are channelling their travel money into their homes.
“Interest rates are of course extremely low at the moment, so the debt servicing cost is quite reasonable so of course with a renovation, you don’t have to try to scrape together some ridiculously high deposit you do for a new home. So, it is a little bit more accessible for many.”
Stuff’s NowNext survey reports that most of the 27 per cent of people who plan to renovate are after a better quality of living rather than wanting to enhance the capital values of their property.
Thirteen per cent of those surveyed blamed the lack of availability of tradespeople as a barrier to renovating now.
35% of homeowners plan to do nothing
27% plan to renovate
21% of those surveyed don’t own property
10% said they would buy an investment property
6% want to downsize
6% intend to move to a larger house
5% want to move to a lifestyle property
3% plan to sell an investment property
This just confirms what we already thought, as the demand grows so do we! Now with more franchises and tradespeople than ever before, we have the infrastructure to keep up with demand whilst still offering a personalized tailored approach to your renovation needs.
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