A significant number of mortgagees are refinancing in order to make improvements to their homes, Loan Market Group has revealed.
According to the mortgage broker’s executive director John Kolenda, almost 50 per cent of their customers are looking to borrow between $20,000 and $100,000 for renovations.
“It’s the major trend we have noticed in recent months as activity in the residential property market has slowed slightly during the winter,” Mr Kolenda said.
According to Mr Kolenda, home owners are making improvements to their properties now so that they can sell when the residential real estate market picks up, with spring traditionally a popular time for vendors to put properties up for sale.
“At times when people are reluctant to sell they will often consider renovating to enhance and prepare their properties for the market when it is on the rise again,” he said.
Mr Kolenda also said his company was seeing an increase in interest from investors, with lower interest rates ensuring there was potential for good returns and cash flows.
“All the indicators are ideal for investors to return to bricks and mortar,” he said.
“Given what has recently been happening in the sharemarket, investors are starting to view property investment as a great long term opportunity to create wealth.”