Building Value Through Extensions In Perth Homes
There is no doubt that home renovations have risen in popularity across Perth in 2020. Homeowners have chosen this path over selling property during this period, largely due to a significant downturn in the Perth property cycle. Tipped to recover and increase faster than other capital cities in 2021, now is a great time to build your property value through renovations projects, in particular through extensions in Perth homes.
One of our recently renovated living rooms – see the full project here.
Why are Homeowners Turning to Extensions in Perth?
This year has seen homeowner spending more time than usual in their properties thanks to working from home, lock down restrictions and a series of new lifestyle changes due to the ongoing pandemic – we cover some of these changes in behaviour in our latest blog. Overseas holidays were put on hold and the Perth property market was in a downturn, meaning the time was not, and probably still isn’t, the right time to sell.
In addition, there are government grants available for sizeable renovation projects, so it’s no wonder that there has been a boom in demand. Homeowners are choosing to build value into their properties through extensions and home improvements throughout Perth, whether for their own circumstances or for future sale.
Renovating to satisfy your comfort and enjoyment can be more important than trying to capitalise on the potential selling price, but failing to renovate your older looking home leaves it looking plainer and less attractive to future buyers.
Current WA Market Position
Living in WA, we can consider ourselves lucky when it comes to our quality of life in 2020. With the state economy in a strong position, a sharply increasing rental demand and the fact that it has never been a cheaper time to borrow money, WA is forecast for a property market surge in 2021.
Over the last year, Western Australia has been the only Australian state to experience growth, with year-to-date figures showing the economy has actually grown by 0.3%, as opposed to the national economy having contracted by 2.2%.
West Australians will also be thrilled to learn that The Housing Boom and Bust Report 2021 has forecasted that housing values across the West are tipped to increase by between 8 and 12% next year. A very encouraging sign despite current WA housing prices sitting at values comparable to those seen in 2008.
This signals a further reason to action that renovation you’ve been considering and choosing Nexus Homes Group for quality craftsmanship and customer service that is second to none.
Government Grants On Offer
There are various government grants available for sizeable renovation projects, meaning there is more financial support on offer to assist homeowners. The Australian Government HomeBuilder Grant is available to eligible owner-occupiers who enter into a contract to substantially renovate an existing home.
The size of the grant to subsidise your project depends on your timing – with the amount set to be reduced on 31 December 2020, and then remaining in place until 31 March 2021.
Adding a Ground Floor Extension
Most would think that a ground floor extension would reduce the amount of outdoor yard space, but in most cases, it can open up previously-unused areas to make better use of your existing grounds. A property in a prime location that doesn’t quite fit your requirements is an ideal candidate and since we specialise in modern home improvements, we can transform your home into an innovative and appealing space that meets the needs of your household.
The image below was taken of a completely reinvigorated two-bedroom, one-bathroom house in Bayswater, transformed into a modern four-bedroom, two-bathroom home. The owners were blown away with the end result. Read and see more about this project and more via our gallery of completed renovations in Perth.
Our ground-level extension in the Perth outer-city suburb of Bayswater.
Adding A Second-Storey Extension in Perth
By adding a second storey, you are effectively adding another layer of functionality to your home. Whether it be for growing families, changing home dynamics or the need for more space, building up is a great way of building value. Modular extensions are built off-site, ensuring minimal disruption to your current dwelling and the impact they can have on your property is tremendous.
Below is a before and after image of a cute cottage in Mount Hawthorn that was transformed into a large family home overnight. The project consisted of a new carport and more importantly, a second storey complete with master bedroom, ensuite and a parent’s retreat.
The before and after of our second storey extension in Mount Hawthorn.
An Opportunity to Upgrade Your Investment Property
Whilst the opportunity of a home renovation is weighted to favour owner occupied properties, a significant opportunity also presents for investment property owners as well. Considering the state of the WA rental market with the government issued moratorium on rent increases and evictions – rent prices are predicted to rise up to 20% once the moratorium, expiring 28 March 2021, is lifted. Ensuring that you are in the best position to maximise rental returns, it might be worth considering upgrading before the wave hits.
Considering a Home Renovation or Extension in Perth?
Our experienced team of designers and builders can take you through your options, including our ground floor extensions to maximise your living, or our second storey additions which provide minimal disruption to your household.
It really is a great time to begin planning for your property, so if you have a project in mind, we welcome you to contact us today for a free design consultation.