Renovations on the Increase
14 June 08Homeowners are turning to renovation rather than adding their properties to a Queensland market bursting with listings.
An RP Data analysis of statewide property listings has revealed there are currently 34,670 residential properties awaiting sale – up a staggering 18,085 over the same time last year indicating that vendors are preferring to hold their property off the market during these slow conditions. A recent survey by Archicentre, the building advisory service for the Australian Institute of Architects, found 46% of homeowners looking to sell now planned to stay put and renovate than risk joining a slowing market.
Paul Eslick, of renovation specialists Reno Kings, said he expected a lot of homeowners would look to improve their properties to make them more attractive in a competitive market. He said the increased number of homes on the market was likely to force house prices down in the next few months. However, Mr. Eslick said renovators were still running into problems with sourcing tradespeople because of the nation's skills shortage. In Queensland, owner-builders can carry out works up to $11,000 on their own land without having to have an owner-builder permit from the Building Services Authority.
Gold Coast property investor Pat Fleming is on her fourth renovation and says that she found the best way to find reliable trades people was to talk to other property investors.
Source: The Courier Mail Date: June 14, 2008