<\/p>\n
There has been a rise in Aussies choosing to see the grass greener where they are, with a massive 25 per cent spike in Queensland alone. Picture: GettyImages<\/p>\n
Surprise new bank figures show a rise in Aussies giving up on buying their next home \u2013 and doing something else entirely with their money instead.<\/p>\n
As new figures come through showing auction clearance rates at their lowest in years and house prices flatlining elsewhere, a growing number of homeowners are choosing to stay put and renovate \u2013 and the numbers are staggering. Renovation lending has surged 15 per cent in just one month, with Queensland leading the nation at 25 per cent.<\/p>\n
National Australia Bank executive for home lending Denton Pugh says it\u2019s a trend he\u2019s watching closely \u2013 and has five tips for anyone about to take the plunge.<\/p>\n
<\/p>\n
NAB home lending executive Denton Pugh.<\/p>\n
By Denton Pugh<\/p>\n
There\u2019s been no shortage of economic news for Australians to digest in recent months. We\u2019ve seen multiple rate moves from the RBA, ongoing global instability, a budget announcement, and a clear shift towards a more cautious, \u201cwait and see\u201d approach when it comes to major financial decisions.<\/p>\n
You can already see that caution playing out in the housing market. National dwelling prices flatlined in May, auction clearance rates weakened through the second half of the month, and sales activity has eased as buyers and sellers take a more cautious, wait-and-see approach.<\/p>\n
But while momentum has softened, the bigger constraint hasn\u2019t changed. Housing supply remains tight, with higher construction costs and feasibility pressures still limiting new delivery.<\/p>\n
Against that backdrop, more Australians are asking how to make their current home work harder, rather than trying to buy their next one. For the growing number of Australians choosing to renovate this year, it\u2019s coming with the added pressure of a global environment that\u2019s still shifting.<\/p>\n
Ongoing conflict, fuel price volatility and supply chain pressures continue to influence costs, particularly for building materials and transport. Interest rate expectations are shifting too, with NAB pushing back its call for the next RBA increase from June to August.<\/p>\n
For Australians looking to renovate, it\u2019s less about waiting for the \u201cperfect\u201d time and more about planning, knowing that some costs can still move. And demand is still strong, with renovation lending up 15 per cent in the past month alone.<\/p>\n
All major states across the country experienced renovation loan growth with Queensland leading the way at 25 per cent, followed by Western Australia (17.9pc), South Australia (15pc), Victoria (10.8pc) and New South Wales (10.7pc).<\/p>\n
<\/p>\n
Much more planning is now going into renovations and home projects than ever before.<\/p>\n
What\u2019s changing is how people are approaching their project. There\u2019s more planning, more flexibility, and more focus on making sure the budget is realistic and manageable.<\/p>\n
I spoke to a customer recently, Chris, who has been renovating his Heidelberg Heights home for the past year, and has felt that shift first-hand.<\/p>\n
He and his young family chose to renovate because they love the area but were outgrowing their space.<\/p>\n
But like many Australians, he\u2019s had to make trade-offs, scaling back finishings, rethinking furnishings and staging landscaping to stay within budget as costs have increased.<\/p>\n
His focus now is on getting into the home by mid-year and creating a long-term space for his family, even if it means some elements come later.<\/p>\n
It\u2019s a mindset many renovators are adopting. Prioritising what matters most, building in flexibility and accepting that not everything needs to be finished at once can make projects more manageable.<\/p>\n
5 TIPS TO HELP MANAGE RENO COSTS:
\nBuild a buffer<\/p>\n
Set aside an extra 10\u201320% for surprises. While price growth has eased, construction costs are still well above pre-pandemic levels, and unexpected increases can quickly add up.<\/p>\n
Lock in what you can<\/p>\n
Check what\u2019s fixed in your quote and what isn\u2019t. Costs tied to materials, transport and energy can still move, so locking in key items early can help avoid blowouts<\/p>\n
Stay flexible and think local<\/p>\n
Global factors like fuel prices, freight and materials such as metals are driving cost pressures. Choosing locally sourced, readily available materials can reduce delays and reduce unplanned for price spikes.<\/p>\n
Time your build carefully<\/p>\n
Starting demolition too early can leave you waiting on materials or trades, especially if supply chains shift. Lining everything up first can help avoid costly delays mid-project.<\/p>\n
Think long term<\/p>\n
Energy-efficient upgrades may cost more upfront, but they can help reduce bills over time.<\/p>\n
Right now, a bit of extra planning and flexibility can go a long way towards helping you stay on budget and get the outcome you\u2019re after.<\/p>\n
<\/p>\n
NAB customer Chris Godfrey has been renovating his Heidelberg Heights home to suit his family\u2019s needs rather than move. Picture: NAB<\/p>\n
Aussie family choose renovating over relocating<\/p>\n
Chris Godfrey, who has been renovating his Heidelberg Heights home for the past year, said he and his family were mindful of rising costs but committed to seeing the project through.<\/p>\n
\u201cWe started to outgrow our home, but we love the area, so we decided the best option for us was to renovate.\u201d<\/p>\n
\u201cWe really want this to be our forever home, so we\u2019ve focused on getting the important parts done first and making it work for us long term.\u201d<\/p>\n
\u201cWe\u2019ve definitely had to make some trade-offs to stay on budget, like scaling back some of the finishings and keeping our old couch for a while until we can buy a new one down the track.\u201d<\/p>\n
Mr Godfrey\u2019s advice to others in a similar situation: \u201cFocus on what matters most and be prepared to compromise on some things so you can keep things moving.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"There has been a rise in Aussies choosing to see the grass greener where they are, with a…\n","protected":false},"author":2,"featured_media":709244,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[64,63,99,164],"class_list":["post-709243","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-au","tag-australia","tag-business","tag-economy"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/709243","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=709243"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/709243\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/709244"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=709243"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=709243"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=709243"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}