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Renovating your property in Australia can be an effective way to personalise your home and increase its value. Whatever the reason for your revamp, smart budgeting can avoid unexpected expenses. Prioritise your renovation projects based on importance. After that, get quotes from multiple contractors to compare prices. Look for cost-saving opportunities like using salvaged materials or buying second-hand fixtures. Also, set aside some savings for unexpected expenses.
The benefits
A reno to your home can bring multiple benefits, including:
- Reduced vacancy periods: Renovating your investment home can attract more potential tenants, which helps to reduce vacancy periods
- Higher rental yields: Improving the appeal of your property can also attract higher-quality tenants. This can be particularly important as an expat living overseas, as you may not have the opportunity to show the property to prospective tenants in person
- Increased tax deductions: You may be eligible for a range of tax deductions related to renovations if you’re renting the property out. These can include the cost of materials, labour, and other expenses incurred during renovation
Finance options
Common possibilities include:
- Borrowing against home equity via fixed-term Home Equity Loans
- Using a Line of Credit to borrow funds up to a pre-approved limit
- Obtaining an unsecured Personal Loan with a fixed interest rate and term
- Using an Australian credit card with a high limit, but cautioning high interest rates
- Refinancing an existing mortgage
Potential difficulties
Obtaining finance as an Australian expat living overseas is not necessarily difficult, but it does have some challenges:
- Lenders need proof of your income and employment, which may require more effort as an expat
- Your credit history may differ from living in Oz, affecting your ability to get finance and may require additional documentation
- Currency exchange risks may arise. Different lenders have varying policies and requirements for expat borrowers
Working with a specialist expat mortgage broker can increase your chances of obtaining finance for renovations because they’re better suited to help expats looking for financing in Australia. If you’ve decided to finance your property upgrade and want to know how to maximise your borrowing capacity, Odin Mortgage can help.
Contact Ben today at ben@odinmortgage.com
