I get asked almost daily by clients, friends and business colleagues if NOW is a good time to renovate their property. It’s a fair question, and one that doesn’t have a straightforward answer where one size fits all. The reason they are asking me is because our company MTP has renovated hundreds of properties in the Bay of Plenty and down the central North Island area along with many other areas of New Zealand in the last 15 years, and they want access to my inside knowledge and experience. So I’m going to share with you some of that knowledge gleaned from those many kitchens, bathrooms, house extensions, and other renovations we have completed.
There is always an upside to renovating at a certain time, and I want to focus on those positives before we cover some of the not so positive points later in this article so you can make an informed decision for yourself.
Let’s start with the cost of materials. During Covid we saw materials increase at unsustainable cost levels and at an intense pace which made it extremely difficult for builders to fix price projects for clients. This has changed and now prices are steady. Increases are still happening but at a much slower rate and less often, meaning your price should not increase much after you sign your contract. Materials shortages are also a thing of the past and projects can be planned and delivered to a measurable and achievable timeframe for clients, further reducing the risk of increased costs if you are for instance living in alternative accommodation whilst your project is being completed. Materials can be ordered at the outset and delivered in time for each stage of your renovation. Materials never ever go down in price so now is the best time.
The other major positive is the new home market. This is very slow so there is a good number of builders and other trades available to quote and manage your project. Remember to always check references of companies before they quote, ensure you can understand the quote in full and it is detailed, and it has a terms and conditions and clear payment terms included for both parties, hopefully at various stages of the project being completed. Always use LBPs for consented works and to ensure quality and peace of mind, plus any relevant guarantees they may provide. Make sure they are experienced in renovation projects as it’s very different from new builds. On the downside, property prices are down on a couple of years back and if you’re borrowing as many do to renovate, you may not have the equity a lender now requires so check that first before you dive into a project and get hugely disappointed. Ask yourself why you’re renovating. In my opinion there are only a few sensible reasons to renovate, the first is to add value to your property, the second is to increase your standard of living or allow for a new family member or a change in circumstances.
The third is because you love where you live and intend to be there for a long time, In this case an investment in your home will pay dividends when you come to sell plus you have an awesome property that fits all your needs for that period.
So the question remains is now a good time to renovate? Our volume of projects is the largest it has ever been so feel free to check out our website renovations.nz for more great articles, hints and tips, or to arrange a no obligation in-home chat about your possible renovation.
MTP – 027 573 6688