Why Home Owners should have
confidence in the housing market
Australian home owners have every
reason to remain confident in the value of their homes
and the Australian housing market.
Image left: Robert
Caulfield
The recent Reserve Bank
interest rate cut of 1% and the tightness of housing
supply in Australia, has put a floor under housing
values in the Australian market.
The announcement in late 2008 of the
tripling of the first home buyers grant to $21,000 by
the Prime Minister will also provide an added boost of
confidence.
With the interest rate cuts lowering the
cost of servicing debt, cutting the number of
foreclosures and removing the downward pressures on
housing prices, home owners should retain a confidence
in their property and its value.
Home owners also have to accept
the boom time of house prices rising at record levels is
over and whilst the interest rate cut will bring buyers
into the market they will be cautious given the current
financial turmoil.
We believe the financial
turmoil will also spark an increase in renovation,
especially by those home owners nearing retirement, who
will look to invest in their own homes rather than move
and pay out tens of thousands of dollars in costs and
charges to State Governments for basically nothing.
With a carefully planned renovation
people can add value to their homes, enjoy their
investment and sell the investment tax free.
The advice from many people undertaking
Archicentre design concepts is that they are investing
in renovation to create wealth as it is a path which
they have control over and can actually see where their
money is going in contrast to having it in the share
market at the whim of the volatile
market.
Archicentre is conducting over 100 Free
Home Renovation Seminars around Australia in 2009 to
assist subscribers maximize their renovation
investment. Details of the South Australian
Seminars are now available with others to
follow.
Robert Caulfield Managing
Director Archicentre
Buying a Property for Renovation and Making
Money
A well planned and executed renovation or
extension could see the owners recoup their investment
with perhaps a 50% tax free capital gain and a greatly
enhanced lifestyle while concurrently enjoying the
benefits of a greatly improved home for a long-term
future.
With an ageing population many of today's
baby boomers are purchasing homes to renovate and live
in with a view to gaining capital on their resale when
they move to smaller or assisted accommodation in their
later years. For this group of renovators the success
of the renovation can have a major impact on their
financial future.
Some tips for renovating a property for
maximum return include:
* Purchasing a property that is structurally
sound.
* Assessing the financial potential
with a design and cost analysis before purchase.
* Ensuring the structure is capable
of supporting the renovation or extension.
* Checking the planning regulations
to avoid costly planning appeals.
* Ensuring the design, finishes and
fittings do not over capitalise the property.
Bring
your Renovation Project in Under Budget
Archicentre holds free renovation seminars
to help people get their project completed effectively
and below budget.
Telephone 1300 13 45
13 to make a booking or visit the website for
more details at www.archicentre.com.au
Welcome to the first edition of Archicentre Newsbreak
for 2009 which promises to be a year of challenges
and opportunities. 
Australian home owners have every
reason to remain confident in the value of their homes
and the Australian housing market.
A well planned and executed renovation or
extension could see the owners recoup their investment
with perhaps a 50% tax free capital gain and a greatly
enhanced lifestyle while concurrently enjoying the
benefits of a greatly improved home for a long-term
future.