When Kiwis were asked in a recent survey what their top New Year’s resolution regarding their properties was, more than half the participants had resolved to move houses to escape the mess, and in the hopes of leaving their problems behind.
Thursday, December 27th 2007, 12:00AM
by The Landlord
Almost two-thirds of the 150 people surveyed had resolved to move rather than fix up their home, making it the second most popular New Year’s resolution among New Zealanders, says Shaun Di Gregorio, general manager of allrealestate.co.nz, who ran the survey. This is despite the average homebuyer facing a mortgage costing 80% of their pay, the survey said.
“While moving is, at times, a viable alternative to improving your current home, be very rigorous in how you make your decision whether to renovate or sell,” Di Gretorio says.
The latest house price statistics show that house price inflation has slowed by more than 10% in 2007, with the average sale price for residential properties decreasing from $406,176 to $393,198 in December.
Although the market may be leveling off, favouring buyers as opposed to sellers, Di Gregorio offers some sound advice to kick-start the decision-making process.
“Evaluate the homes around you, including their amenities, recent sales in the area and the age of the construction. Leaving emotions aside, ask yourself whether your home is already the best house on the street, or are you surrounded by many homes that have been reconstructed or renovated?
“If your house is already one of the best houses in the street then you may not get the right sort of returns on your improvement if you renovate. However, if you are in a prime location and there are other houses which have been recently done up, which are selling well, renovation could be a viable option,” he says.
Most importantly, Di Gregorio says, “Don’t make the decision without doing the research. Talk to industry professionals and friends or family who have been through a renovation. Look at the real estate market, get an appraisal on your house and jump online and look at prices of houses that you would consider buying instead. It won’t hurt either to ask a construction professional what a possible renovation is likely to cost.”
“With all that information you are likely to make the best decision, not only for the coming year, but in the long run, both in terms of finance and lifestyle.”
Top 10 New Year’s Property Resolutions for 2007-8 1. De-clutter 2. Mover to bigger home or nicer area 3. Buy new furniture 4. Improve energy efficiency 5. Garden makeover 6. Paint 7. Improve home security 8. Water conservation 9. Add an indoor/outdoor entertaining area 10. Sell home
