NSW planning changes may make renovations easier

By the resi financial blog team, 06 January 2014

NSW planning process simplified

If you are planning to refinance investment property in order to carry out home renovations in New South Wales, recent planning amendments could simplify the process.

On December 19, NSW minister for planning and infrastructure Brad Hazzard announced amendments to the State Environmental Planning Policy, which will allow a number of smaller-scale residential projects - including many home renovations - to proceed under a streamlined approvals process.

The residential building sector in Australia's most populous state is among the most heavily regulated in the country, the Housing Industry Association (HIA) observed.

Applauding Mr Hazzard's announcement, HIA NSW executive director David Bare said: "Renovation activity in NSW has just started to turn the corner after a decade of
negative growth."

Mr Bare explained that the decision could support further recovery in the renovations market and represent a positive development for the state's residential housing sector.

He added: "Any reforms that reduce the time and cost to do business in an industry so critical to the health of the NSW economy are to be welcomed."

Earlier this month, the HIA also commented on November housing construction figures published as part of the Australian Industry Group/Housing Industry Association Australian Performance of Construction Index.

The figures, which showed a lift in overall activity, as well as new orders and deliveries, represent the second consecutive month of expanded activity in this sector. The November index, the HIA noted, is at its highest level since October 2010.

According to the HIA, this is good news in a tight market - but further policy changes may be needed in order to ensure housing construction recovery can keep up with demand.

Categories: Property Investment