Why 2021 Is The Year For Home Renovations In Perth
As we enter into a fresh new year with a positive outlook towards 2021, Perth homeowners and investors will be delighted with the latest news headlines which are alluding to a promising year of growth for Perth property prices. Even if you’re not looking to sell your property this year, with the property curve set to increase, it’s an ideal time for home renovations in Perth as this will enable you to position your property towards its highest value ahead of market price surges.
We take a look at why now is an ideal time to start planning a future renovation, whilst taking a snapshot look at the Perth property market, with some tips and considerations ahead of your future project.
Forecasting The Perth Property Market In 2021
In a recent Rent West article it was reported that property values throughout Western Australia are tipped to grow by as much as 12% this year – welcomed news for owner occupiers considering a future move, as well as investors looking to maximise their rental returns.
Economists and property experts have forecasted the Perth median house price to increase by roughly $47,500 with the median Perth unit price tipped to rise by $37,000. This is welcomed news for the WA property market which had previously been in a stagnated position, only to see 4.9% growth in property values during the September 2020 quarter.
Thanks to record iron ore exports contributing to a growing state economy, alongside record household spending and consumer confidence beginning to recover to pre-COVID levels, we’re now seeing a positive impact on property prices.
This is positive news for those sitting on their nest egg with future plans to sell, or those just wanting to improve their capital as outlined in our recent, The Benefits Of Home Improvements To Add Value To Your Home.
Advice For Investors In The Rental Market
Perth investors will be counting down to the expiration date of the Residential Tenancies Act set for late March 2021, with opportunities to increase rents once the imposed freeze on rents is lifted by the government who implemented the initiative as a COVID-19 response. According to REIWA’s President (Damian Collins), rental rises in Perth are expected to rise by 10-15% in 2021.
The current vacancy rate in Perth is also its lowest point in 13 years, presenting an ever-present opportunity for property owners to acquire higher quality tenants thanks to healthy competition, as well as higher rental returns. Homes with more features, space, functionality and style will command higher weekly rentals, thus leading to the potential of home renovations driving strong returns for investors.
Perth is tipped to experience as much as a 15% growth in property prices in 2021.
Considerations Ahead Of Home Renovations In Perth
Whether or not you’re looking to increase the value of your property for capital gains, a future sale or investment returns, there are several key considerations to look at prior to embarking on a renovation project – we’ve outlined just some of these below:
- The Brief: Make sure you’re clear on what you wish to achieve. Take inspiration from online resources, discuss with friends/colleagues, collate your ideas from popular renovation shows so you have a blueprint – take a look at our Renovations Gallery to get you started!
- Your Budget: It’s always a good idea to know your price-point before you begin, so you can align your plans with your budget. Be generous and comprehensive in your estimates so you ensure all elements are included – also allow for contingencies.
- Your Timeline: Due to various government grants and a surge in demand for home renovations in Perth, you may need to allow for a slightly longer timeline when planning your upcoming project as builders and renovations experts clear their projects from 2020.
- Materials & Finishes: Your renovation timeline may be affected by the type of materials you want to use as there may be some delays or limited availability due to COVID-19 restrictions, so it’s a good idea to bare this in mind when in your planning phase.
- Property Access: Will the property be fully accessible during all stages of the project? Are you going to be living in the property at the time? It may be worth considering a modular construction to limit on-site disruption, as well as reducing cost and time on the project. Take a look at our blog on modular constructions for a deeper look at why modular is becoming a popular choice for home renovations in Perth.
- Select An Renovation Expert: Arguably the most important consideration as you want to ensure you work with the right company who can deliver exactly what you want, within brief, time and budget. We’ve outlined some tips and recommendations of how best to do this in our blog entitle Choosing The Perfect Perth Renovations Company.
A recent Nexus Homes renovation in Victoria Park – full gallery available here
Nexus Homes Group – Your Home Renovation Perth Experts
As leaders in the home renovation market in Perth, Nexus Homes Group are perfectly placed to be able to help with your future project. Our experienced team has worked across houses of all shapes and sizes, and our very own Director (Matt Keogh) is always personally involved in each project, ensuring you get the Nexus quality each and every time.
Why not take a look at our range of home renovations throughout Perth to get a feel for our past projects, with everything from ground floor extensions, through to second-storey additions and even custom builds.
We welcome you to take advantage of our free no-obligation quoting system and book a free design consultation with our team today to begin the planning phase for your upcoming home renovation.