If you’ve been searching on the property market for a while, you’ll no doubt have seen a few houses in need of a little, shall we say TLC? Some are dire, whilst some have potential.
Want to know a secret?
Buying a house in need of renovations isn’t necessarily the financial disaster you might think it to be.
Let’s check out the pros and cons of purchasing a home in need of renovations. With a little time, money, and effort, you could find you bag yourself a dream property, for a fraction of the cost.
Advantages of Purchasing a Home in Need of Renovations
There are many advantages of buying a home that needs a little renovation work doing.
- You can create your own bespoke home, including layout, as well as the new colour scheme and decoration you want. You can’t choose the layout of a home which is not in need of any repairs or changes. This means you have total control
- The total price of buying the home and the renovations often comes to equal to, or less than, the price of a completely new and ready to move into home. The difference is that you have designed this one exactly the way you want it
- The cost of buying a home which needs some renovation work doing is lower than a house which is ready to move into
- Your home will have a higher value for selling on in the future, once the renovations are done. This makes buying a home in need of renovations a future investment which could leave you with a tidy profit in your bank account. For instance, if you add in a completely new kitchen, and it costs you around £10,000 initially, you could be looking at an extra £30,000 onto the property’s value in the future
Disadvantages of Purchasing a Home in Need of Renovations
There are downsides to everything, and of course when you are spending a large amount of cash on a property, you have to think about the other side of the coin too.
- There might be a very large temptation to go over your original budget, and therefore spend more than you can afford – a renovated property is not worth getting into debt for
- This isn’t the ideal option if your budget is quite tight. We just mentioned it’s possible you could go over your budget, and that could lead you to stopping the renovations, which leaves you with a less than desirable home
- There isn’t a 100% guarantee that any work you do will increase the value of your home. It’s likely, but it isn’t definite, and that is something you need to be prepared for. If you’re happy to make the changes for your own benefit, and then if it adds property value that’s a nice side effect, that’s fine
- Finding the right construction workers and trades people can be difficult. You will need to shop around and look at reputations very carefully, as this is a huge responsibility to get right. Cheap doesn’t always mean good, especially not where property renovations are concerned
As you can see, there are upsides, and there are downsides to purchasing a property which needs a certain amount of renovation work. The best advice is not to count out the possibility, and instead to look at each property you view through sensible eyes. Ask yourself whether this is a good investment for you. Ask yourself whether you can really see this being the dream home you want it to be, without it breaking your budget. Ask yourself if you have the time to be able to dedicate to it.
If you’re nodding your head when you think about it, and you have your heart set on the home, go for it. Renovated properties aren’t the big no no you might think.