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Renovations a money waste: Baldwin

RENOVATING the family home in the past six months could be a waste of time and money, according to Geoff Baldwin Team managing director Geoff Baldwin.

“In many cases homeowners would be wiser to sell and buy a more suitable home rather than spending large amounts of money on their current residence,” Mr Baldwin said.

“Typically, a person undertaking a major extension in a medium priced suburb has to wait at least seven years before they get the money back but, unfortunately, many renovators sell much sooner and lose thousands of dollars.”

During the first three months of the year, Western Australians spent more than $56 million on renovations.

The amount of money spent on renovations has increased sharply over the past two years. In 1998-99 homeowners spent about $180 million on home renovations – $30 million more than the previous year.

Mr Baldwin said many people decided to make additions or renovations for emotional reasons.

“As a result, they risk overcapitalising their homes which is one of the most common mistakes in real estate.”

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