4 reasons why October could be the right time to renovate

The weather is good, rates are low and the market is slow. The time is ripe for renovation.

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Man and dog renovating together
If you’ve been watching the latest series of The Block, odds are you’re beginning to feel the reno bug. As the series winds down and the contestants’ houses start to take shape, you might be feeling the inspiration to begin your own renovation project.

The good news is it’s a great time of year to get started. Here are four reasons why:

1. The warm weather is your ally

Spring is upon us and temperatures are already soaring. Thankfully, they have yet to hit the punishing highs we’re likely to see this summer, and this can work to your advantage in a renovation project.

Warm-but-not-too-warm weather is a great time to tackle a renovation project. If it’s a smaller DIY project, you’ll benefit from being able to work in comfortable temperatures. However, a full-scale overhaul is where you’ll really appreciate the importance of good weather.

If you’re tearing out walls and ceilings and plan to have your house open to the elements, spring is a great time to do it. For example, in Sydney the average high in October is 22 while the average low is 14, and October has fewer average days of rainfall than the summer months. Details like these are important when you could spend weeks or months without a roof or walls in sections of your home.

2. You can get in before the Christmas shutdown

Like most industries, the building industry typically downs tools over the holiday period. Christmas is a difficult time to find trades and source supplies for a renovation project.

According to Renovation Junkies, you should plan on 4-6 weeks of renovation time for every $80,000 you spend. When you’re planning your renovation count on very little work happening from the period right before Christmas all the way through Australia Day, which could potentially add another 4 weeks to your renovation time.

Jumping on your renovation project now could mean either finishing or making decent headway before the holiday shutdown period. This is an important factor to take into account for large-scale renovations considering the amount of disruption they could cause to your day-to-day life.

3. The property market is cooling

If you’re pondering whether to take on a major renovation project or just sell up, a cooling property market could make staying put the wiser decision.

The latest CoreLogic Hedonic Home Value Index showed a slowing property market across the country, with combined capital city dwelling values growing just 0.1% for the month of August. The result was driven by a flat Sydney market, which saw no growth for the month.

On top of this, auction clearance rates around the country have been sluggish. The week ending 24 September saw the average capital city auction clearance rate fall to 70.7%, down from 75.4% from the same weekend last year.

With this in mind, you might be better served adding value to your current home rather than trying to sell at the moment. A major renovation can add up to 10% to the value of your home, particularly if you hold your home for more than 5 years.

Interestingly, according to HGTV, the renovation projects that could see the biggest return on investment are the simplest ones. Improving kerb appeal, adding insulation or fixing minor exterior faults can make a big difference to how your property performs when it comes time to sell.

Renovations guide: learn how to renovate your property and make a profit

4. Line of credit home loan rates are low

When you’re figuring out finance for your renovation, a great option could be a line of credit home loan. This type of loan allows you to unlock the existing equity in your home.

A line of credit home loan gives you a flexible transactional home loan that allows you to spend up to a credit limit determined by the amount of equity you have in your home. Many lenders will offer you a credit limit up to 80% of the value of your existing equity. Interest on the loans is only calculated on the amount you use.

With a competitive home loan environment, line of credit loans are offering attractive rates at the moment. Lenders in the finder.com.au database are currently offering line of credit home loans with rates below 4%. This could make it an advantageous time to finance your renovation project.

You can compare line of credit home loans in the table below. And if you have decided that now is the right time to renovate, read our guide to learn how to plan and prepare for your project.

Compare line of credit home loans

Rates last updated November 16th, 2019
$
Loan purpose
Offset account
Loan type
Repayment type
Your filter criteria do not match any product
Name Product Interest Rate (p.a.) Comp Rate^ (p.a.) Application Fee Ongoing Fees Max LVR Monthly Payment Short Description
3.74%
$0
$349 p.a.
80%
Low fee line of credit loan with package benefits.
3.94%
$0
$15 monthly ($180 p.a.)
90%
A low rate line of credit with low ongoing fee.
5.12%
$395
$10 monthly ($120 p.a.)
90%
A home loan which gives flexible access to your equity.
5.71%
$0
$395 p.a.
80%
A low interest rate home loan with a low ongoing fee.
6.21%
$600
$10 monthly ($120 p.a.)
95%
Tap into your equity with a line of credit home loan from Westpac.
6.41%
$600
$150 p.a.
80%
Access your equity with a low variable rate and low fees.

Compare up to 4 providers

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Credit services for Aussie Select, Aussie Activate and Aussie Elevate products are provided by AHL Investments Pty Ltd ACN 105 265 861 (“Aussie”) and its appointed credit representatives, Australian Credit Licence 246786. Credit for Aussie Select products is provided by Residential Mortgage Group Pty Ltd ACN 152 378 133, Australian Credit Licence 414133 (“RMG”). RMG is a wholly-owned subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124 AFSL and Australian Credit Licence 234945. Credit for Aussie Activate products is provided by Pepper Finance Corporation Limited ACN 094 317 647 (“Pepper”). Pepper Group Limited ACN 094 317 665, Australian Credit Licence 286655 acts on behalf of Pepper. Credit services for Aussie Elevate products are provided by AHL Investments Pty Ltd ACN 105 265 861 Australian Credit Licence 246786 (“Aussie”) and its appointed credit representatives. Aussie is a trade mark of AHL Investments Pty Ltd ABN 27 105 265 861. Credit and any applicable offset accounts for Aussie Elevate are issued by Bendigo and Adelaide Bank Limited ABN 11 068 049 178 AFSL / Australian Credit Licence 237879.

Aussie is a trade mark of AHL Investments Pty Ltd. Aussie is a subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124. ©2019 AHL Investments Pty Ltd ABN 27 105 265 861 Australian Credit Licence 246786.

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