As a home renovation contractor, it is critical that you understand the various happenings in the industry and their consequences. Most contractors will conduct thorough research in a bid to find out why business is struggling, but fail to do so when business is booming. Such action can only be described as negligent because factors affecting the industry are often intertwined. It is worth noting that currently, there is an upsurge of home renovations in Australia which has resulted in positive business prospects. This article informs home renovation contractors why the industry is doing well.
Soaring House Prices -- The primary reason Australians are doing more renovations and putting off moving, at least for the time being, is the high rates of houses. While relocating may be an attractive option for those that want to change scenery, the costs involved might be prohibitive. As home prices continue to soar, therefore, renovating becomes a much cheaper option. For instance, if a house is currently worth $700,000, then it is only logical to conclude that a more spacious home will cost higher. Notably, it would make sense for homeowners to install a new bathroom or kitchen. It is true that renovating will not solve a client's location problem, but it goes a long way towards saving costs and improving contractors, business.
Many Baby Boomers Live Privately -- According to the Australian Institute of Health and Welfare, the population of people aged over 65 and over will more than double by 2057. This is enough evidence that currently, this number is steadily growing. Additionally, the Australian Bureau of Statistics also estimates that by 2050, baby boomers will need care services in their own homes. A home renovation contractor might wonder how the statistics affect the industry and rightly so. With people aged 65 and above refusing to relocate to nursing homes, the need for accessible housing has grown considerably. The trend has been driven by the changing healthcare needs of the older generation who are renovating their homes to accommodate, ramps, railings, and lower cabinets among other items.
Improved Lending for Renovations -- With house prices shooting skywards, fewer people are going for mortgages with the majority avoiding the same as much as possible. Such client behavior can be attributed to the high repayment interest rates on mortgages. Lending for renovations, on the other hand, has been on the rise since 2015. One of the main reasons for increased borrowing is that home renovation contractors ask for part payment when repair working is starting as opposed to full payment.
