Renovators Delight?
Firstly, this week I wanted to start off by congratulating my team on the superbly conducted campaign at 25 Rangers Avenue, Mosman which went to auction on Tuesday evening. The marketing was on point and the result reflected a well considered and executed process - congratulations to our owner and the delightful family who won the day.
The sale of Rangers Avenue was revealing as it showed the high number of people that need a bigger home but don’t want to go through a lengthy and costly build. It seems like waiting 6-12 months for council approvals in addition to another 6-12 months of feeling like you are on a nightmare renovation reality show doesn’t appeal. Go figure? Seriously…when my plumber turned up at our house recently in a shiny Mercedes ute I was like…really? Mercedes utes, Porsche SUV’s, the world truly has gone mad.
My point is that many people are now abandoning the renovation process in favour of borrowing more and trading up. It would seem that the burden of more debt is more palatable than enduring a lengthy build. As I write this, I can confirm that I haven’t had hot water in my own home for 6 weeks…honestly, you haven’t lived until you shave and shower in a public bathroom for an extended period of time. It’s pretty hard to get all Glengarry Glen Ross fired up for a long day of selling when you are prepping in a council toilet!
Anyway, despite what your thermometer says in your Porsche SUV today is actually the second day of Spring, real estate season has begun.
So what do we see in the last three months of the year? Interest rates will rise again on Tuesday but we all knew that. Our team is seeing more stock coming on and what we think will lead to a pretty busy time for sales. An increase in activity is good, the more properties that trade the more buyers will get comfort that yes buying real estate is actually a very good idea.
For those of you thinking of renovating I’ll say this, we are seeing more builders and trades freeing up meaning if you are game, now may be a good time to start looking more seriously at just getting it done.
It’s true that it’s hard work, and living with dust for a long period will test the strongest marriage but you do end up with exactly what you want in the end.
The other benefit of doing the renovation is your house will be worth a lot more to those that want a turn key solution. In the age of instant gratification and a flattening market the gainers are likely to be the brave that lived through the pain.
Until next week,
David