Home loan interest rates of 4.5 per cent haven’t stopped owners pouring $680 million into property upgrades in Victoria this year – up $80 million on last year.

But affordable homes in Mildura appear to be allowing home-owners to relocate rather than renovate.

Figures released by the Victorian Building Commission show the number of home renovations in Mildura fell over the past nine months.

At their peak, building permits for home renovations in Mildura soared to 188 in November last year, but only 72 applications were submitted in May.

As makeover madness continues to grip Victoria’s inner city areas, LJ Hooker Real Estate agent Kerri Birch said first home buyers were buying new, rather than buying what used to be called a “renovator’s delight”.

With the first home-buyers bonus offering up to $19,500 to build a new home until June 30 next year, young, Mildura people were seizing on this opportunity.

“In my day first home-buyers would take something that was falling down,” she said.

“Nowadays, with the grant, they’re buying new homes.

For more of this story, purchase your copy of Tuesday’s Sunraysia Daily 13/7/2010.