A home extension is becoming a more and more desirable option for Perth homeowners looking to escape and avoid the uncertainty and risk of the Perth housing market.
It can be exasperating to “trade up” when you are looking for a larger home. Not only do you have to find another home and buy it, you have to sell your own home. Then, of course, you have to pack up your belongings and move. You also have to change all of the accounts such as cable, gas and electricity from your old home to your new home.
Meanwhile, your children often have to move schools and say goodbye to their friends. While moving to a new home may be exciting for you, it can be terrible on your children. The promise of a bigger room or a bigger backyard is small consolation to a child who is leaving his or her friends behind.
The Grim Numbers
Currently, Perth is in a buyer’s market. While it sounds good on the buying end, a buyer’s market is a terrible time to try and “trade up.” People are selling their homes for less than market value. As a matter of fact, statistics for the June quarter show that a near-record 20.1% of Perth homes were sold at a loss.
While only 9.5 of buyers lost money on their homes nationally, the average loss was a whopping $73,009. In the Perth CBD, 52.8% of those who sold homes took a loss. In the Perth market as a whole, 30.2% of units and 17.9% of houses sold at a loss.
These figures come from the CoreLogic Pain and Gain Report. Cameron Kusher, the head of research at CoreLogic, sees the situation as “grim” and as a reflection of what is happening in Perth at the moment. The level of loss for houses is the highest since September, 1996, while the losses for units is the highest number since the study started in 1994.
Mr Kusher believes that a lot of people who moved to the Perth and WA areas during the mining boom are moving back to where they came from now that the boom is over. He also sees a few more quarters of “pain” for the Perth housing market. He fears an “oversupply” in underperforming capital cities such as Perth and thinks it may get worse before it gets better.
Home Extension or Perth Housing Market: You Decide.
This leaves people wanting to “move up” in a precarious position. You can find a great home at a bargain price, but you have to be able to get rid of your own home first and not take a bath doing it. This is one of the few times in history where the banks may actually be overvaluing homes because the market may say your home is worth a lot less than the bank does at this time.
Why is this important? Because you probably won’t get what you want to for your home, but the bank will probably calculate your home value and equity at a higher value than you might be able to get for your home. Since interest rates are still at an all-time low, you may be able to refinance your home and have enough money to turn your current home into your dream home with a home extension.
With a home extension, you are in total control. We can not only extend your home out, but we can also extend it up with a second storey addition if you would prefer. We can renovate and update the older portion of your home to make it look like the home extension, or we can make the home extension look exactly like your original home.
Either way, you get to plan and build your dream home without moving anywhere and without the hassle of buying and selling.
Call Next Level Extensions Today
To learn more or for a consult with award winning home renovations designer Max Sardi, call us today: 1300 948 094.