Over the last year, our homes have become our sanctuary in almost every sense of the world. This has made many acutely aware of the need to have a space that suits all their needs. And, with luxuries like international travel off the cards, for now, people are choosing to invest in upgrading their property.
This phenomenon is so widespread that it’s actually been given a name – the COVID bump. This refers to the bolstering the real estate and home renovation industries have received over the last few months. It also represents the perfect market conditions for bringing your dream home to life – either by renovating or moving.
Here we explore the best ways to capitalise on the COVID bump.
2021: The year of renovations
Despite initial fears that COVID would cause a dip in home renovations, the numbers suggest there has actually been a bit of a boom. In a recent report, the construction industry’s peak body, HIA, said they expect $38.5bn to be spent on renovation this financial year. This is a significant increase (over $2bn) on last year and Victoria is leading the charge.
There are different views on what’s driving the spike in interest in renovation projects. Some believe people’s priorities have changed, while others think it’s homeowners having more time and money. And some point to the ongoing success of TV shows like The Block, which normalises undertaking renovation works.
Whatever the reason, increased activity means a healthier construction industry. This, in turn, means materials are more widely available (and affordable!) and finding support is easier. It also means that if you’ve been thinking about renovating your home, now may be the perfect time.
Capitalising on rising property prices
While some are looking to make the best of the property they have, others are looking to upgrade. There are also more people seeking the security and stability of homeownership. When combined, these trends have put significant upward pressure on property prices in many areas.
This means that if you have been considering selling, the market is primed for you to get a great price. However, as most buyers are looking for new and renovated homes, you may need to do some updating before listing.
When renovating for resale, research is critical. You need to understand what your potential buyers in your area expect and how much updates could increase your sale price. You also need a clear renovation budget and a solid plan to avoid overspending.
- If a kitchen update is part of your renovation plans, we recommend:
Matching your new kitchen design to the type and location of the house. If you have a large home in a family-friendly neighbourhood, buyers will likely expect a well-appointed entertainer’s kitchen. If it’s a smaller home or townhouse in an emerging area, a more basic kitchen design may be sufficient.
- Addressing major functionality issues should be your priority. Buyers will try to picture themselves in the space, and an unworkable layout could put them off.
- Sticking to a neutral colour scheme and popular materials. If you’re renovating for resale, it’s important to make sure your design has as wide an appeal as possible.
- Focussing on making the space more presentable if money is tight. Going for more budget-friendly options like laminate benchtops instead of stone, kitchen handles instead of handleless, using cabinets with doors instead of drawers. These are more cost-effective and can make a big difference.
Want to discuss your options?
If a new kitchen is on your wish list for this year, call Zesta Kitchens. Whether it’s for yourself or for resale, our experienced team can help. If a new kitchen is on your wishlist, visit a showroom and talk to one of our consultants about your plans.