Why I’m still renovating my own place amidst this perfect storm…
With all the raging news about interest rates, inflation, stock markets, material shortages, war, bitcoin, builders going under etc. - you would think that it’s almost time to just throw in the towel, downsize the office, lay low and ride out the downturn. In a way, as Architects we are used to our job being quite volatile. By nature we are always riding the peaks and troughs of the economy and the building industry. We are not immune from everything that’s going on, that’s for sure. I remember when the GFC hit (and I was a uni student then) work evaporated and people were saying that Architects were driving taxis, just to survive.
The truth is - even as we sense the turmoil and the negative sentiment, and we try to navigate it as a Studio - we are still working on our own houses. If you’ve read this far, I’m sure you’d like to find out why.
Before I get into the “meat” of the article, let me say that we are not removed from the “everyday world”. Even though I’m posing in the bay window above, let’s be clear - that’s not my house! My own place is a “renovator’s special” c. 1968 brick highset. So hopefully this post doesn’t read as though I live in a parallel universe.
Why push forward?
There are a few reasons why I think we should keep preparing for a better future. Some of these remarks are my personal opinion, so please make sure you do your own research. But the way that I see things:
Prices won’t escalate forever
It’s true that the last two years have seen high prices, but with the way the economy is going, it makes sense that things won’t endlessly escalate. Shipping prices, for example, have already come down significantly from its September 2021 high, and computer chip supply is vastly improved (see this Financial Review article) as the world’s supply chain normalises post-COVID. With the negative consumer sentiment around resulting in weakened demand, I feel like there’s a real likelihood that pricing and supply issues will level out, at least for the next while.Labour cost will be a long-term problem in South East Queensland
I feel labour shortages will continue to be a problem in the residential building world - both due to a booming mining sector in Australia, and the upcoming Brisbane Olympics which means new infrastructure-level projects coming online over the next few years. Compounding this is the fact that there simply isn’t enough young staff coming through to get the work done. In fact, recent data shows that only 55.1% of trade apprentices are seeing through their training programs (see this Sydney Morning Herald article) which leads me to believe that labour costs for building work will continue to be high for a while to come. As a builder said to me recently, “I’m excited that the Olympics are coming - but I don’t know who’s going to bloody build the facilities for it.”New building rules are coming into play later this year
There are new Livable Housing Standards coming, and likely new requirements for insulation etc - all of which sound great and are probably motivated by people with good intentions in an office somewhere, but undoubtedly will add considerable cost to any renovation or new build project. Some of the draft provisions we’ve seen are - how do I put this politely - not very well thought out. At all. I get so frustrated by the red tape here sometimes - not by the intent of it, but how in reality changes always entrench long-lasting housing affordability issues. That’s a blog for another day I suppose.Life happens
This is a very logical reason for some, but life simply doesn’t stop. Sometimes work just needs to be done. In my case, wifey and I are expecting a new family member (woohoo) and that pushes some renovation works into the “act now” category. Some of you may be already running out of space, or you see kids growing up, or the building is damaged and needs rectification. Waiting may not be a viable option.It pays to be prepared
My final point is that it’s a wise idea to be prepared. For me, it was never an option to do the whole renovation project at once - there was always an overarching plan that allowed me to plot how the house would evolve, one step at a time. So make that plan. Be sure that each step, every little intervention, contributes to the overall picture of what the house will become. It’s a worthwhile investment to make sure money is spent wisely. Talk to us if you’re curious and we can chat further - you can always reach our office on 07 3726 5430 or get in touch via this contact form.
We know how it feels!
I know my circumstances are different from yours, so make sure you get professional advice. But I hope you find this short article helpful.
It’s not an easy time to build, that’s for sure. But we won’t walk our clients through waters that we’re not prepared to step in ourselves. And in this case, we are continuing our own home projects through this current climate - being well prepared, working with the right people, with the mindset that we should use our money strategically and wisely for the sake of all who will step through our front door.