Australian home owners considering renovations have been urged to bring them forward and give preference to the use of Australian building products as a way of creating jobs.
Robert Caulfield, managing director of Archicentre said a renovation led recovery where billions of dollars could be invested in upgrading Australia’s housing stock could underpin tens of thousands of jobs in the building industry.
“On average Australian renovators spend $20 billion a year, a significant contribution to Australia’s economic activity, with an average of $80,000 spent on renovations.
“The use of Australian made building products will protect employment and the economy during this difficult period," said Caulfield.
He added that a well designed renovation can produce tens of thousands of dollars extra when the home is sold to boost retirement funds and quality of life.
“Improving the family home through renovation before sale was often the last chance for people nearing retirement to increase their nest egg before scaling down to a smaller home without incurring tax.”
A Government pension review earlier this year outlined a bleak future for Australia's ageing workforce, with the majority of 80 per cent of Australians aged 65 and over getting the pension and relying on it as their major income source.
“With a quarter of Australia's population expected to be 65 or more by 2047, the use of equity in the family home to boost retirement funding, renovation will become an important national wealth creation strategy.”
Caulfield said the dramatic drop in demand for new homes will provide a buyer’s market for renovation projects as builders look for replacement jobs in a competitive market.
"Through the increasing number of design concepts being booked by Archicentre clients, we have seen first hand home renovations being fuelled by excessive property taxes on new housing developments.
“Bluntly when people do the figures they believe they will get far better value out of renovating their existing home rather than spending $50,000 to $60,000 to move on property taxes and other costs.
