Housing Industry Association Projects “Modest Recovery for Residential Construction” While Home Renovations are Projected to Reach an All-Time High
Announcement posted by Next Level Extensions 19 Dec 2012
Home renovation firm in Perth, Next Level Extensions, provides analysis of statistics and offers solution to those who can’t afford to build a new home.
According to Australia’s Housing Industry Association (HIA), while the worst is over for the home construction industry, any recovery during the next two years will be “mild” or “modest” at best. They also predict a “mild improvement” in home renovations during the same period. The report predicts an increase of 1.8%, with most of it being driven by Western Australia and NSW. Renovations, which fell 2.7% in 2011-2012, are projected to increase by 1.6% in 2012-2013.
While modest increases do qualify as a mild recovery, there are still some important factors that appear to be holding back a full-blown recovery or a housing boom. The report cites what they call “household deleveraging,” tighter credit, interest rates that could be lower, and what they call “excessive taxation of new housing.”
The positive factors are seen as mild interest rate cuts, new home incentives in some states, and housing policy reform by the NSW government. According to the HIA, “The… recovery… rests with NSW.” The HIA is of the opinion that NSW can lead Australia into growth, but that if it fails, the market will decline again.
Housing starts for the 2012 calendar year are projected to be the “bottom” of the curve, with a total of 136,809 new houses. By 2014, that level is projected to increase to 152,983. The projected renovations rise will bring the total $29.61 billion for 2012-2013, while that number is projected to hit $29.958 billion, which will be a new record for renovations, which peaked in 2010-2011.
Allan Williams, Owner of Next Level Extensions, is not surprised that renovations are growing: “With all of the economic factors that have combined to lower the average income, it simply makes a lot more sense for most people to at least look into building a home extension instead of building a new home or buying a larger one. Home extensions cost a lot less per square foot than a new home does, and you don’t have to uproot your family.”
Williams continued, “When you build a new home, you have to apply for a new home loan. You have to tour “spec homes,” or hire an architect to design one for you. Then, you have to move your belongings from your old home into your new home. When you buy an existing home, the process is similar. You have to look at a lot of homes before you decide on one. Then, you have to hope someone else didn’t put a bid in that was a bit quicker or higher than yours. A sizeable commission for the real estate brokerage is added into the price. It’s really a lot of work.”
Williams elaborated further: “With a home extension, you don’t have to pay nearly as much money, and you can often rework your existing loan. You don’t have to go through the drudgery of moving, and you don’t have to pay a mover or rent a truck. Also, there are no surprises with a home extension. You always know exactly what you are getting.”
Williams concluded: “It’s quicker, easier, and less expensive. While house renovations isn’t for everyone, you owe it to yourself to consider all of your options if you are looking for more living space.”
Next Level Extensions is a home renovation firm in Perth. For more information, contact them through their website: http://www.nextlevelhomes.com.au/ or call them at (08) 9300 4691.
While modest increases do qualify as a mild recovery, there are still some important factors that appear to be holding back a full-blown recovery or a housing boom. The report cites what they call “household deleveraging,” tighter credit, interest rates that could be lower, and what they call “excessive taxation of new housing.”
The positive factors are seen as mild interest rate cuts, new home incentives in some states, and housing policy reform by the NSW government. According to the HIA, “The… recovery… rests with NSW.” The HIA is of the opinion that NSW can lead Australia into growth, but that if it fails, the market will decline again.
Housing starts for the 2012 calendar year are projected to be the “bottom” of the curve, with a total of 136,809 new houses. By 2014, that level is projected to increase to 152,983. The projected renovations rise will bring the total $29.61 billion for 2012-2013, while that number is projected to hit $29.958 billion, which will be a new record for renovations, which peaked in 2010-2011.
Allan Williams, Owner of Next Level Extensions, is not surprised that renovations are growing: “With all of the economic factors that have combined to lower the average income, it simply makes a lot more sense for most people to at least look into building a home extension instead of building a new home or buying a larger one. Home extensions cost a lot less per square foot than a new home does, and you don’t have to uproot your family.”
Williams continued, “When you build a new home, you have to apply for a new home loan. You have to tour “spec homes,” or hire an architect to design one for you. Then, you have to move your belongings from your old home into your new home. When you buy an existing home, the process is similar. You have to look at a lot of homes before you decide on one. Then, you have to hope someone else didn’t put a bid in that was a bit quicker or higher than yours. A sizeable commission for the real estate brokerage is added into the price. It’s really a lot of work.”
Williams elaborated further: “With a home extension, you don’t have to pay nearly as much money, and you can often rework your existing loan. You don’t have to go through the drudgery of moving, and you don’t have to pay a mover or rent a truck. Also, there are no surprises with a home extension. You always know exactly what you are getting.”
Williams concluded: “It’s quicker, easier, and less expensive. While house renovations isn’t for everyone, you owe it to yourself to consider all of your options if you are looking for more living space.”
Next Level Extensions is a home renovation firm in Perth. For more information, contact them through their website: http://www.nextlevelhomes.com.au/ or call them at (08) 9300 4691.