Purchasing a property to renovate may not be the best decision for everyone, and needs careful consideration.
If you’re looking to buy a property in Durham, you may be wondering if it’s worthwhile to buy a home in need of renovation. It’s certainly true that you may be able to snap up a bargain by opting for a fixer-upper. Whilst renovating could be a great way to maximise an investment, if you fail to accurately estimate costs, you could find it has turned into a money-pit.
If you’re wondering, “Should I invest in a house that needs some significant work?” there are several factors to bear in mind before you make a final decision. As experts in the Durham property market, our team at PIIM Property have some top advice to help you make the right choice to suit your circumstances.
Consider The Advantages Of Renovating
Two major advantages come with opting to purchase a property in need of work over a home that’s ready to move straight into. Cost is the biggest benefit. Potential homeowners can buy a property that they wouldn’t otherwise have been able to afford if they go for a property to renovate.
The asking price will be much lower than its potential market value when a property renovation is needed to bring the property up to standard. If you can find this property to renovate in a popular neighbourhood, you can double your advantages.
Properties in the most desirable areas of Durham typically come with high price tags. With a discounted property needing renovation, you can achieve your dream of living in an expensive neighbourhood at an affordable price.
Weigh Up The Disadvantages Of A Fixer-Upper
Two major disadvantages come with opting for a property to renovate. The biggest potential problem comes in the form of overspending. Many people who go for a renovation project fail to budget accurately for all the costs involved.
With re-plastering, plumbing, re-wiring, and resolving issues like dampness, you could add a significant sum to your overall costs. Then, of course, there’s the extra cost of painting and decorating, flooring, and furnishings to take into account. Many renovation projects go over budget, which can lead to a poor-quality outcome or evan a project that gets abandoned before completion.
It’s essential to get accurate quotes from professionals before embarking on any renovation project and to make sure that you are able to set aside a minimum of 10% extra on top of your estimated budget to cover any unforeseen expenses.
Bear in mind, too, that you may have to find a temporary accommodation solution if the property cannot be lived in while the renovation work is carried out. You may be able to stay with relatives or friends, but this can prove to be stressful, or you may need to pay for a rental property in the short-term.
If you’re paying a mortgage on your fixer-upper, you may not have sufficient funds to cover a monthly rent too, especially if you need to pay a loan to cover the essential renovation works. Even if you’re able to live in the property, there may be extra costs due to being unable to use some of the home’s amenities. For example, you may need to eat takeaway food if the kitchen is under renovation.
Is Renovating a Property Right For Me?
There are clearly pros and cons that come with buying a property in need of renovation in Durham.
If you have sufficient time and money to spend on renovating a property, and prepared to put up with some stress and discomfort to achieve your goal, it could be the ideal choice for you.
On the other hand, if you lack the finances, patience, and skill to turn an uninhabitable property into the perfect home, you may be better off getting in touch with us to find suitable alternatives in the Durham area that are ready to move right into!
Get in touch with the team at PIIM Property today on 01207 772033, and we’ll work with you to find the ideal property to suit your circumstances.
