People decide to take out loans for a range of reasons, but it seems that home improvements are top of the list for many Australians at the moment. The latest figures from CUA show that renovations are high on people's wish lists, as they rank above going on holiday and planning a big wedding for the main reason people decide to take out credit.
As many as 10 per cent of personal loans granted by the provider during the year to June 30 were for home improvements or household goods. The average loan size for renovations was $15,000, showing that people are getting serious about their DIY painting projects and other tasks around the home.
"Improvements to the family home, like an extension or a new entertaining area, can create extra space or comfort for the family to enjoy today, as well as potentially adding value to what is, for most people, their biggest asset," noted CUA Head of Customer Insights Chris Malcolm.
Mr Malcolm indicated that renovating a bathroom or paining the house can be seen as an investment, which is probably why so many people are keen to spend big in these areas.
This is contrary to figures released by the Housing Industry Association (HIA) earlier this year, as it forecast difficult times for the home renovations market in 2015. Its Renovations Roundup revealed that while new home building reached record levels last year, this couldn't be said for improvements.
The HIA valued this particular industry at $29.66 billion last year, accounting for as much as a third of all residential construction activity. It is also responsible for as much as 2 per cent of the country's gross domestic product.
No matter what your household or garden DIY project might involve, make sure you take a look at the range of products available from Kennards Hire. We have all the equipment for hire you will need to make that all-important investment in your home.