Published on January 11th, 2017
Should you buy a renovator’s delight?
Renovation projects: are they right for you? Buying a property to fix up is a popular option for first-home buyers, investors and downsizers alike – but such a large decision should be met with as much caution as excitement.
If you're wondering whether a house for sale could be a renovator's delight, here are a few things you should think about:
Is a renovation project right for you?
Everybody from investors to first-home buyers may be interested in purchasing a project for renovation.
The first step in determining whether or not to buy a house to renovate is to consider the personal factors involved in such an investment.
First, you've got the matter of timing. Depending on the renovation project you've selected, it may take months or even years to get the property up to standard. That's why it's a good idea to avoid homes with major structural issues – these can extend the lifetime of a project significantly. If you're on a strict time limit, a renovation may not be ideal – but if you've got time to spare, it could result in plenty of returns for your patience.
Secondly, there is the matter of personal commitment. If you are only dealing with minor aesthetic changes, you might be able to do the work yourself. If there are major adjustments required, you could be better off allowing a professional company to take charge. Both options, however, require a level of personal commitment; either physical work or managing those who are working for you. Make sure the project is something you are willing and able to take on before the purchase.
Lastly, there are your motivations. Everybody from investors to first-home buyers may be interested in purchasing a project for renovation. If you're buying for added value, you will have different priorities compared to a first-home buyer, who may just want a place to live within their budget. Then, there are those who want a bespoke home. Different motivations require different types of properties, timelines, budgets and so on.
How much does it cost to renovate?
Perhaps the most important consideration is whether the project fits within your budget.
If you bought a property that only needed one or two room changes, you could be looking at $20,000 to $30,000 worth of work. If it requires more significant adjustments in more expensive-to-renovate rooms (kitchens and bathrooms), that might stretch up to $50,000 or more. You might even find that it costs more to renovate a home than it would to just buy one already at the standard you expect.
That being said, renovating for profit, frugality or a personalised home is still an excellent option for many different kinds of buyers. If you have considered all the angles and are hoping to buy a property for renovation, get in touch with the team at Elders Real Estate to find out how we can help you make that dream a reality.