As we approach the tipping point of what looks like a recession, one may wonder why it is the prime time to do a renovation, or how the 2 are even linked.
As house prices tumble in Australia, the lending slows, builders / contractors pipelines dry up and material prices drop. This is the basic concept of supply and demand. As the market turns increasingly in favour of the buyer, fetching a good price for your property becomes exponentially more difficult.
It is not all bad news, as opportunistic thinkers will benefit most from difficult markets. As cost of materials drop, contractors are increasingly more keen to convert any work in order to put something inside their empty schedules. This is a stark contrast to just a couple of years ago when most showed little interest as they are flooded with work left right and centre.
If situation allows, always capitalise on the timing to facilitate a big transaction such as selling, buying or renovations.
Now is the prime time to renovate or buy.