Buying a property involves making a series of decisions right the way through the process. One of the first decisions you need to make before you are ready to view potential homes is whether you want to buy a home that needs work and improvement or a home that is already fixed up and ready to move into, with no work to be done.
We recommend that you evaluate the pros and cons so you can decide which option is right for you.
The pros of buying a property that needs work
Lower purchase price
Opportunity to create your dream home
Appealing period features
The cons against buying a property that needs work
The amount of work involved
Living with disruption
The pros of buying a property that is ready to move into
Easier to finance
The cons against buying a property that is ready to move into
Higher purchase cost
It may not be to your taste
Some buyers are looking to make a house their dream home rather than buying a dream home. They will be looking for property adverts that state that the property ‘requires work’ or ‘requires modernisation’. Here are the pros of buying such a property.
The price of a property that needs work is bound to be lower than a property that has everything already done to it. With a lower-priced property that requires work done to it, there is more potential to increase the value of the property in the medium to long run.
Buying a house that needs work done to it offers the buyer the opportunity to make the property exactly how they want it. You can choose the kitchen, bathrooms and wall colour yourself and spend as much or as little as you choose to make it into your dream house.
Many houses that need work have unique period design details and architectural features that add character and charm to a home. Restoring such features well can significantly increase the value of a property.
Whether you are handy and are able to carry out the work yourself or you have no handyman skills and need to hire contracted labour to carry out the work, home renovation projects take time. The amount of work involved is often underestimated and a project predicted to take two weeks often runs into months or even years.
Buying a fixer-upper may exhaust your funds and although the property isn’t yet how you’d like it to be, there is no option but to move in and live amongst the chaos of renovations and building work.
The purchase price of the property may be significantly cheaper but renovation costs can end up escalating and you could end up spending more on the property than intended. Do your research and budgeting well, allowing for unforeseen costs that crop up.
Just move in and unpack. With a renovated home or a home in good working order, you will benefit from being able to move in straight away with everything ready to use.
Financing a property that is fully renovated, modern and ready to move into, is much easier than financing a fixer-upper and it is easier to qualify for a loan.
All those modern conveniences and design features come at a price. A property that has had everything done to it already will be priced significantly higher than one that needs work.
The brand new bathroom or kitchen of a property may not be what you would have chosen yourself. New properties may offer several options for you to choose but buying a renovated older property means settling for the design and style of the previous owner.
Make your decision whether to buy a fixed-up property or one that needs work, early on in the process so that you don’t waste valuable time.
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