Renovation Boom Looms
Aussie homeowners have taken to renovation with a gusto with new analysis showing a significant increase in loans for renovations.
The latest mortgage insights report by Money.com.au says renovation loans are one of the fastest-growing areas in new loans. Renovations loans are up by 9% annually.
Money.com.au’s home loans expert, Mansour Soltani, says rising property prices, limited supply and the cost of transacting are driving people to stay put and renovate.
The report says the average new loan size in Australia is $640,998, with the average loan size over the past 12 months for owner-occupiers being $616,000 and $627,000 for investor loans.
New home loans are also on the rise, up 7% annually but are still 19% below what they were in January 2022. Loans to property investor are also rising but not at the same pace, they are up by 3% in the past year.
According to Soltani investor loans are particularly strong in Western Australia, up by 4.6% in July alone.
