Has having everyone home for Easter got you thinking about upgrading your bathroom, wanting to redo your garden or ready to reno your whole house?
Did you know that a simple reno could cost you more now than in the past two decades? Luckily, there are a bunch of low rate personal loan options that could help you cover the cost.
Recently released CoreLogic data revealed a national increase of 3.8% in the quarterly measure of residential construction costs, outpacing the Consumer Price Index of 0.8% for the same period.
The Cordell Construction Cost Index (CCCI shows this is the largest quarterly increase since Q3 2000, when construction costs increased 7% after the introduction of the GST.
There was a surge in dwelling approvals, which peaked in March, which are now breaking ground, leading to widespread demand for materials and trades.
Unfortunately, this swell in demand coincides with an ongoing global supply chain crisis caused by the pandemic, then made worse by instability and inflation caused by the geopolitical situation in Ukraine.
“The quarterly rate of growth in construction costs is happening everywhere and is not restricted to one city or state, it’s a national trend,” said Tim Lawless, CoreLogic research director.
“There was a much bigger increase in our index when the GST was introduced, however outside of that structural adjustment this is by far the biggest quarterly change on record. This would be the largest market driven increase we’ve seen.
“For anyone who is looking to build or to renovate, or for someone who owns a business involved in the residential construction industry, it means they are all likely to be facing significantly higher costs.”
Construction cost inflation could go for another 12 to 18 months, says CoreLogic
Lawless notes the ongoing inflation issue and says “it’s unlikely the industry can absorb a cost increase this significant into their margins and higher construction costs will ultimately be passed on to the consumer, placing further upwards pressure on the price of a new dwelling or renovation.”
No matter how big or small, the truth is renovating can require a bit of a cash injection, and that’s where renovation personal loans can take some of the pressure off.
Want to start comparing loans for your reno? Check out some options on offer right now below or head to the best personal loans in Australia this month for Mozo Experts Choice Award Winners and editor’s picks.
WARNING: The Comparison Rate combines the lender’s interest rate, fees and charges into a single rate to show the true cost of a personal loan. The comparison rates displayed are calculated based on a loan of $30,000 for a term of 5 years or a loan of $10,000 for a term of 3 years as indicated, based on monthly principal and interest repayments, on a secured basis for secured loans and an unsecured basis for unsecured loans. This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may inﬂuence the cost of the loan.
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