The home renovations industry is optimistic about good days ahead. An article by Leith Van Onselen for FX Open points out the reason why the industry was suffering for so long.
Consumers had become very cautious since the Global Financial Crisis. The crisis had started due to undeserving mortgage sales in America and thus the Australian homeowners were looking to pay their mortgage debts off as quickly as possible as a precautionary measure. Naturally, this made them bypass home renovations project due to lack of savings.
Also, lack of rise in dwelling prices did not release enough home equity against which homeowners could borrow. Limited borrowing resulted in limited renovations projects.
Thankfully, writes Onselen, the low interest rate environment prevailing now will encourage home renovators as mortgage pressure on borrowing would be relatively lesser. Upswing in dwelling prices is also expected to release higher home equities in today’s market conditions- this may further facilitate borrowing.
You can read the original article here.