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How to Renovate in Canberra with Rising Interest Rates

How to Renovate in Canberra with Rising Interest Rates?

The real estate market in Canberra is constantly evolving, presenting homeowners with the task of managing renovations in the face of increasing interest rates. However amidst this challenge a clear trend emerges. There is a growing demand for home renovations not in Canberra but throughout Australia, as a whole.

According to the data, from Statista there is an outlook for major home renovation projects in Australia. The fiscal year 2025 is expected to see an increase of two percent, which is quite promising compared to the slight decline of 0.6 percent observed in 2020. Statista’s projections suggest a trend with an estimated surge of 2.6 percent in home renovations by 2023 and a further increase of 2.1 percent by 2024. Looking ahead experts anticipate another boost with a projected increase of 0.2 percent, by 2024.

So, with rising interest rates is now the time to renovate? 

Don’t worry, this article explores how you can increase the value of your property and make the most of your home equity and provides advice on renovating your bathroom ensuite or laundry room without spending a fortune. Additionally we’ll show you how Stellar Bathrooms can help transform your space while staying within your budget ensuring an investment for the future.

The Power of Renovating: Recent Research on Property Value

According to a report, from All Homes, the housing market in Canberra has undergone a transformation after facing four quarters of decline the market has now turned around. This marks the end of a downturn that had plagued the market for quite some time. The signs of recovery are evident with the prices of houses in Canberra showing an increase, during the quarter of 2023 – a development that hasn’t been since mid-2022. The current median house price stands at $1,042,730 indicating a growth of 1.8 percent compared to the quarter. 

It is worth noting that this significant increase can largely be attributed to the renovations made to bathrooms ensuites or laundries, in the real estate market. Undertaking a range of bathroom remodelling projects can result in an impressive average Return on Investment (ROI) of 70 percent while more extravagant renovations have an average ROI of 60 percent. These numbers clearly show that an executed bathroom remodel can significantly enhance the value of your home.

The changing preferences of consumers have had an impact on the state of the real estate market in Canberra. Homebuyers now place increasing importance on functional bathrooms when considering purchasing properties in Australia. The way bathrooms are designed has evolved beyond practicality, transforming them into sanctuaries that residents can enjoy. Designers have noticed a shift over the decade with bathrooms now being considered as important as kitchens by clients. According to Luke Di Michiel, a designer at Caroma, “Advancements in material technology and the wide range of options for bathroom materials, finishes and colours have completely changed how we perceive and expect bathrooms. The multitude of choices empowers consumers to define their styles and preferences, with precision.”

Leveraging Home Equity for Your Renovation

When it comes to funding your renovation dreams, accessing the value locked within your home’s equity can make a difference. Home equity acts as a resource that can be used to finance a range of home improvements. As your property increases or as you steadily repay your mortgage, your equity expands. This accumulated equity becomes a wellspring of possibilities that can be harnessed to revitalise your spaces.

One significant benefit is the possibility of obtaining interest rates that are lower when compared to alternative financing options. When you secure the loan using the equity, your home lenders tend to perceive it as less risky, resulting in favourable terms for you. However, it is important to note that there are also drawbacks. Opting for home equity as a means of financing means putting your property at stake, which emphasizes the importance of making repayments.

To make the most of your home equity it is important to evaluate the market value of your home in order to determine the equity. This process requires planning. Moreover, lenders usually have criteria and paperwork that are necessary for a seamless application process. In some instances lenders require homeowners to have at least 20 percent equity before considering their application.

Budget-Friendly Renovation: Tips and Tricks

This article*can help you best navigate your budget concerns and prepare for this decision. But here is a summary of advice and strategies to ensure that your bathroom renovation stays within budget without compromising on quality.

Explore Cost-Saving Measures

The secret to achieving an affordable bathroom renovation is to consider cost methods that still deliver an end result: 

  • Material choices you make can have an impact on costs. Look into durable materials that give the appearance of expensive options. You may not know what these are, but with decades of experience in the industry we can help you understand these options.
  • Efficient project management is also crucial – we will work with you to plan out your renovation timeline to reduce labour costs and streamline the process.
  • Setting a budget that you are comfortable with is essential for the bathroom renovation project success. We guarantee a transparent cost analysis before we begin working. 
  • Identify what matters most to you and allocate funds accordingly so you don’t overspend on essential items. It’s wise to include a buffer in your budget for expenses.

Stellar Bathrooms: Transforming Dreams into Reality

Here at Stellar Bathrooms we truly understand the importance of delivering outcomes while sticking to your bathroom, ensuite or laundry renovation budget. 

We take pride in providing solutions that don’t compromise on quality, allowing you to create a luxurious and functional bathroom that suits your budget perfectly. Feel free to get in touch with us today for a discussion about your renovation projects.

Don’t forget to stay tuned as we reveal insider tips, for making your renovation journey both cost effective and satisfying!

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