Home buyers and renovators are almost evenly divided over the
impact of interest rate rises on buying a home or proceeding with
renovations, according to Archicentre, the Royal Australian
Institute of Architects building advisory service.
In an Archicentre consumer sentiment poll of over 900 consumers
on the Archicentre website which asked the question - Will an
increase in interest rates delay your purchase of a home or
renovation project? 47.7% of the participants confirmed they would
proceed with 52.7% saying they would delay their actions.
Managing Director of Archicentre,
Robert Caulfield said the home buyer and renovator consumer
sentiment poll over the past month, whilst still showing optimism,
in nearly half of the respondents also revealed they were not
willing to chance their luck in a rising interest rates market.
Image right: Robert Caulfield, Managing Director of
Archicentre
Mr. Caulfield said, "not only are home buyers and renovators
facing higher interest rates, their budgets are being squeezed by
rising food, water, energy and petrol prices. For home buyers this
is being compounded by the massive jumps in the cost of purchasing
an existing home.
"With average house values growing at 25% in Melbourne
($463,000); 20.1 % in Brisbane ($425,368) and 20% in Adelaide
($400.659)* we are urging people to be cautious in the amount of
money they borrow and over the condition of the property they
purchase. * Source: Australian Property Monitors
"Home buyers who borrow to their maximum limit can be placed
under severe financial pressure if they find structural, plumbing,
electrical or roofing problems that can cost tens of thousands of
dollars to repair to make the home safe and liveable."
Mr. Caulfield said that the uncertainty of interest rates and
higher prices being demanded for properties is forcing home buyers
and those buying for renovation and investing purposes to increase
their level of due diligence.
Archicentre has seen a 10% increase nationally in its
pre-purchase building inspection reports in the past six months,
with many people requesting a termite inspection as well as a
structural assessment of the building.
The Archicentre consumer sentiment poll
Bank
Interest Rates
Will an increase in rates delay your purchase
of a home or renovation project?
Yes 52.3%
No
47.7%
Total votes: 922
