Will renovesting be the 2018 property trend?
A panel of economists has predicted three major trends within the Australian property market for the year ahead, says finder.com.au Insights Manager, Graham Cooke. These expected trends come after the panel correctly predicted that the cash rate would remain at 1.5 per cent following the Reserve Bank of Australia’s final meeting of 2017.
So, what trends should property investors be looking out for this year?
Predicted trends for 2018:
1. Single-digit growth in eastern capital cities, though with greater potential in Melbourne and Hobart.
2. An oversupply of apartments causing prices to struggle to keep pace with house-price growth or even leading to a collapse of the apartment market.
3. A rise in the popularity of ‘renovesting’ due to increased prices and greater difficulty in climbing the property ladder.
What is ‘renovesting’?
‘Renovesting’ is another way to say, “improve rather than move”. In lieu of selling up, property investors and homeowners may be looking to increase the value of their properties by enhancing what they already have. By focusing on bettering existing properties, investors are able to boost the value of their current investments without the potential struggle of navigating a difficult property market. What kind of renovations are worth doing?
Worthwhile renovations can include remodelling bathrooms, refreshing the house’s facade, or even something as simple as repainting. Certain renovations are more likely to add value to your home than others. It’s important to consider how much you’ll have to spend on renovations and what sort of returns you can reasonably expect.
How can I fund my ‘renovesting’?
Renovations often require immediate access to stacks of cash you simply might not have. Fortunately, there are a number of options available to make your renovesting dreams a reality, including:
• Apply for a personal loan – a personal loan can finance small renovations with a fixed rate for the entire duration.
• Use the equity in your home – borrowing against your home will likely get you a more competitive interest rate but will set you back in your mortgage repayments.
• Refinance your mortgage – reviewing your mortgage and securing a lower interest rate can save you thousands of dollars which can instead go towards renovations.
To work out which finance option is right for you, Contact the team at Premium Portfolio Finance today
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