Construction costs have dropped 1.9% in the first
quarter of 2009 according to Archicentre in the new
Archicentre Quarterly Cost Guide.
Archicentre's predictions that a 5% to 15% drop in
costs on custom designed homes and renovations over
twelve months was on track.
The current low
level of interest rates continues to make home
renovating an attractive proposition for home owners and
the economy with tax free capital gains for the home
owner and the majority of expenditure going to locally
produced materials and labour a real stimulus
package.
Changes to superannuation in
the recent Federal Budget limiting contributions will
provide a further economic boost to renovation as people
use extra funds to improve their
lifestyle.
The first home buyers
grant is also having an impact on renovation as people
buying existing homes have a bit more cash to improve
their homes after
purchase.
With labour and
material costs dropping for renovations the major issue
facing many renovators and owner builders is management
of the project, handling permit applications, ensuring
work is done to the appropriate standard and ensuring
tradespeople are coordinated.
Archicentre
is finding an increasing tendency for people halfway
through projects to make contact when they realise they
are out of their depth in managing an expensive
renovation with costs blow outs.
In
the current economic climate cost control has become
vital with banks tightening up
lending.
One of the trends in the
past quarter has seen a dramatic increase in the number
of home owners, renovators and builders wanting to
include energy and water saving features in their homes
and renovations.
The Archicentre new Cost
Guide is available to download at
www.archicentre.com.au 
