Survey finds Gen-Y prioritises renovations

A new survey has found that young owners of real estate are more likely to save up for a home renovation than to landscape their garden.

The Loan Market survey polled 532 respondents and 37 per cent said their savings would be directed towards an upgrade.

The next priority was appliances or furniture with 30 per cent of people saying they were saving in these areas.

Landscaping held the smallest priority with only 23 per cent saying that was their next project.

Corporate spokesperson with Loan Market Paul Smith said the main goal with any renovation was to increase the value of the property.

He added that many lenders would look favourably upon a renovation.

He commented: "It's often worthwhile negotiating with your lender, an additional discount or incentive to refinance your loan for the purpose of renovation because you'll be adding value to the underlying asset and making a significant long-term investment in the property."

Mr Smith continued by saying that upgrades are common with Gen-Y, given that they buy houses for sale that have potential rather than ones that are already renovated.

He also said they renovate because the younger generation typically buys smaller homes or units where an upgrade is much easier to carry out than in a larger property.