Should you buy a renovator's delight?
For many home buyers, the idea of buying a property you can transform into the house of your dreams is an alluring prospect.
Buying an older home in need of work can also allow buyers to get their ‘foot in the door’ of a good suburb at a more affordable price. But how do you know if this is the right thing for you?
Understand the current building market
At the moment there are significant delays in getting trades and building supplies and this is expected to continue well into 2023. Renovating is unlikely to be a quick process so expect significant delays. This may work if you can live in the home and deal with ongoing sporadic renovation work. It may be something to consider if you are renting while waiting to move in and need to extend your lease.
If you are a handy person and can DIY a lot of work, still expect shortages in some building supplies, which will extend the process.
Be aware of costs
You need to critically assess the level of work required and make sure you have a thorough understanding of how much it will cost to make these improvements.
Be diligent with your financial estimate. It’s better to prepare yourself to spend more than strictly necessary than it is to underestimate costs. In this regard, it is a smart decision to hire a REIWA buyer’s agent to help you navigate the purchase as their expertise can provide valuable insight and assistance.
In light of the situation in the building market, it is also essential to have a good financial buffer. You should be prepared for costs to increase from your initial estimate.
Be realistic
The scale of the project you undertake will largely be influenced by the age and condition of the house. Does the home just need a fresh coat of paint and some new fixtures and fittings? Or does it need more extensive upgrades like bathroom and kitchen renovations, electrical work or retiling?
Don’t enter into a project that you can’t see yourself completing. Renovating a fixer upper is time consuming so be sure you have properly considered the work effort involved and can commit to the scale of the upgrade.
It is may be tempting to think you can do it yourself, but if you don’t have the required skills you will cause yourself stress, delays and perhaps extra expense if you have to engage trades to rectify any errors.
Prepare yourself for the unexpected
Anyone who has ever renovated will tell you that you need to prepare for the unexpected. There can be plenty of unknowns when embarking on a renovation and you are likely to be thrown some curveballs. Be prepared to roll with the punches, whether its extending the budget, dealing with delays or finding the scope of work has increased.
When approached and executed correctly the experience of buying a fixer upper can be extremely rewarding. You have the opportunity to convert a run-down home into a show stopper and increase its capital worth.
If you’re considering renovating, be sure to speak with a local property expert about your options.
SOURCE: www.reiwa.com.au
