Should you consider buying a renovator?

Many potential buyers will be hitting the pavement this spring selling season and wondering if they should choose a run-down property so they can afford to buy in a more desirable suburb.

Purchasing a property that requires a little bit of work can be a great way to save some money, but there are a lot of things to think about before you jump straight into a renovation project.

Before buying a renovator you need to be aware of your capabilities and understand the true cost of time and labour to bring a property up to scratch.

Sometimes there are only a few things that need changing, such as paint colours or an old kitchen, but if every room needs re-doing or the property is unliveable as is then you may need to seriously consider whether buying the property is a good idea.

In a lot of cases the people that buy seriously run-down properties have significant capital behind them to renovate straight away, or potentially even rebuild.

If you’re really set on finding a renovator but don’t have considerable funds to do all of the work right away then try not to take on too big of a project.

Look for properties that are still move-in ready but just require a bit of a spruce up. Go through a property room-by-room to figure out what exactly needs to be done and whether you will be able to tolerate until it can be fixed.

A few tips for buying a renovator:

  • Consider whether any work needs to be done prior to moving in.
  • Figure out your budget for renovating after taking into account purchasing costs.
  • During inspections note all of the things you don’t like about the property and what you would like to change.
  • Figure out the costs of labour or materials to make any desired changes.
  • Chat to property experts to get an idea of what they would do to fix the property. You can even have a chat to the selling agent who might have a good idea of the home’s history and any renovations that have already taken place.
  • Get a building and pest inspection before buying.
  • Compare the property to others in the area – what renovations have they done and have they added value?

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