Renovesting is tipped to be an emerging theme for 2018, so what is shaping the marketplace and providing new opportunities for property investing. Graham Cooke, Insights Manager at finder.com.au, says the official interest rate is likely to stay static for a while longer and experts have identified single-digit growth, apartment oversupply and ‘renovesting’ as themes we are likely to see in 2018.
My favourite Podcast is Kevin Turner’s Real Estate Talk.com.au and the latest episode had a great discussion with Graham Cooke, who identified three main trends that are being signalled by economists for 2018 and they could also see from the survey of 40 or so that they conducted in the last month.
- Single-digit growth in capital cities and slowing, but one possible standout performance in Hobart.
- Oversupply of apartments in ‘Melbourne and Sydney’ and the potential for “the collapse of the apartment market” so price is going to be more volatile.
- The third tip coming from economists is “Renovesting”, with the property ladder becoming increasingly difficult to climb, they’re expecting to see an increased number of Australians next year trying to increase the value of their property through actually renovating and getting new kitchens and new bathrooms and stuff.
Kevin coined the phrase ” Improve rather than move”, and we are seeing the constant intrigue with Renovation TV reality shows, DIY on Youtube and Bunnings in every town. A lick of paint can make all the difference, you don’t have to do a complete update, just some minor tweaking can make all the difference.
What I am seeing is an increase in DIY’s coming unstuck with not starting in the right place, throw money at projects for little gain, and end up with a ‘money pit’ of despair. Our last two homes that we purchased were couples who started a project and ran out of money quickly, poorly finished and had to sell well below market value due to the house being unhabitual. If you would like my top 10 tips – where to start contact me today