When Renovating In Tough Times Is a Smart Move
When you choose projects with a high ROI & significant impact on your home’s functionality
Compelling reasons to consider home renovations in the current economic climate
With mortgage rates still high, persistent inflation, and a prevailing sense of economic uncertainty, you might be questioning whether ‘now’ is a good time to embark on home renovations. Well, the surprising answer is “yes”.
Despite the current economic challenges, if you have the financial means to renovate without causing undue strain, there are real advantages to sprucing up your home during these somewhat uncertain times.
Historically, periods of economic downturn, or near recession, have often been good for home renovations. The reasons are twofold: reduced competition for builders and building materials and the potential to enhance your property’s value for future resale.
For many homeowners, the present economic climate has made renovating and staying in their current homes a less risky choice than moving. However, that depends very much on the type of renovations people are contemplating and how long they intend to live in their homes.
What renovations should you consider now?
If you’re contemplating home renovations during an economic downturn, prioritise projects with a high ROI or return on investment. In New Zealand, where we love outdoor living, expanding your living space or improving indoor-outdoor connectivity can substantially boost your property’s appeal and resale value. Hard landscaping can be a winning investment, especially if it involves adding beautiful courtyards, louvre roofs, decks, outdoor heating and outdoor kitchens.
Jeremy O’Rourke, the managing director of Lodge Real Estate, told One Roof that adding outdoor decks can increase a home’s value by up to 30%. The cost varies depending on size and materials.
It’s crucial to note that decks over 1.5m high require building consent, and unconsented works can complicate selling. To get full bang for your buck, you need to ensure all legal aspects are in order.
Availability of builders in Auckland
After the recent surge in residential building activity in Auckland, we had an influx of builders. Now, however, we have softer house prices. This has meant an increase in available builders. But, beware. More builders doesn’t necessarily mean more high-quality professionals. You still need to employ experienced, qualified individuals who are familiar with the NZ building code for your home renovations, so thorough research and selection are crucial.
We contracted Dan and his team for our deck renovation project as the old deck has some H&S concerns. We ended up not only with a nice new deck but also having some rotten timbers removed around the house and part of the tilted floor remade. Now I can be confidently living in my house without having to worry about safety. Dan and his team are knowledgeable about the work process and they have the patience and skills to explain this process to non-handy people like me. Appreciate the help. Strongly recommended!
Renovate with proven professionals
Your property is a valuable asset, so handle renovations with care. Home renovation is an investment, and like any investment, it’s wise not to overcommit to extensive projects and to consult with a professional. Early engagement with a building professional will also ensure that your application and building plans meet all requirements.
Now is a good time to renovate in Auckland
If you have the resources, home renovations in a recession, or near-recession, are an excellent idea. However, there are considerations. At DBS Residential, we recommend carrying out renovations that focus on high ROI; high-impact projects that enhance functionality. You’ll make your home more comfortable while potentially adding substantial value to your most significant asset for future resale.
Renovating during the hard times
According to the experts, a recession is an ideal time for home updates that enhance liveability, comfort, and functionality, and provide a good return on investment. If you’re thinking about renovating your place, don’t hesitate to contact DBS Residential on 09-884 0919 or send an email. Based on the North Shore, we carry out renovations as far north as Orewa, in the central Auckland suburbs, South Auckland and through West Auckland out to Kumeu.
Or Call 09-884 0919
