Alterations and additions spending is expected to account for more than a third of total spending on residential investment in 2016.
In the first of Commonwealth Bank’s Future Home Insights Series, Michael Workman, senior economist, said over the longer term, a number of economic, cultural and demographic trends are emerging that may significantly influence the Australian housing market.
“Commonwealth Bank has identified the major trends shaping Australia’s housing market by 2030 to assist home buyers understand how the property market is evolving over time,” he said.
One of these trends, according to the series, is that home renovations spending is predicted to top $32 billion in 2016 alone, or around 36% of total spending on residential investment.
CommBank general manager of broker sales, Sam Boer, said this could present big opportunities for mortgage brokers.
“Mortgage brokers or lenders can help customers access the additional equity in their home to renovate, subdivide or invest,” he told Australian Broker.
“There are a number of ways a customer can access equity in their home loan, such as topping up their existing variable rate loan or applying for a line of credit which they can access and use for renovations when they like.”
