Auckland boom in home renovation

By Anonymous
March 19, 2015 has reported (08/03/2015) on Statistics New Zealand figures that show that Kiwis have spent 1.5 billion on renovating houses last year, up from $940 million in 2012.

The number of home owners choosing to renovate has jumped nearly thirty per cent since 2012.

Grant Florence, chief executive of The Certified Builders Association, says that renovation is big business particularly in that last 18 months as people expand the floor area and complete upgrades to their home.

He said that the cost of renovation often won against the costs of taking the next step on the property ladder.

Property advisor, John Bolton from mortgage service, Squirrel, said he was busy processing loans for renovations from $60,000 to $1.1 million.  He highlighted that some people are afraid that if they sell they won't get back in the market.

Some first home buyers were spending up to $70,000 on home insulation, a new kitchen, painting and decorating with no structural work.  Others were adding French doors and reburbishing flooring. The more extensive loans included adding bedrooms or bathrooms.

The surge in home renovations in Auckland comes as house prices in the area continue to skyrocket.

According to QV, the average Auckland house price had soared to $775,555 at the end of January 2015.  They also revealed that 31 of the city's 157 suburbs now had an average house price topping $1m.