When you purchase a renovator, you are essentially buying a property that will require significant improvements to make it liveable. Depending on the condition of the property, renovations can include anything from painting walls and updating fixtures to refinishing floors and replacing windows. So grab your tool belt and let's get started!
Additionally, you may need to invest in structural repairs such as repointing brickwork or reinforcing foundations. Before committing to purchasing a renovator, it is important to have an inspection done by a qualified professional to identify any potential issues that need to be addressed.
Once you have an understanding of the project's scope and cost, you can decide whether investing in a renovator is worth it for your specific situation. For some people, the lower purchase price may be enough incentive to take on the challenge of transforming their dream home into reality. Others may prefer the convenience of buying a move-in ready home without taking on additional expenses or delays associated with renovations.
Ultimately, only you can decide whether buying a renovator is worth it for your particular situation. With careful research and planning, however, you can make an informed decision about how best to proceed with your purchase.
Pros Of Buying A Renovator
You can usually get them for a much lower price than a move-in ready home. This is because most people don’t have the time or money to put into fixing up a home, so they’re willing to sell it for less.
You can make it exactly how you want it. With a move-in ready home, you’re stuck with whatever layout and design the previous owner chose. But with a fixer-upper, you can gut the entire place and start from scratch. This way, you can create your dream home without having to compromise on anything.
Fixing up a home can be a fun and rewarding experience. It’s always satisfying to see the fruits of your labor and know that you created something beautiful all on your own.
The improvements and upgrades you put into it will increase its value, so when you eventually decide to move on, you’ll be able to get more money than what you paid for it. Or you can refinance equity from the property to purchase another one.
Cons Of Buying A Renovator
The first con of buying a renovator is that it can be a lot of work. If you're not prepared to put in the time and effort, then it's probably not worth it.
It can also be expensive. You'll need to factor in the cost of materials, labour, and any other associated costs.
There's also the risk that you won't be able to sell the property for a profit. This is particularly true if the market is down or if there are any unforeseen problems with the property.
It's important to remember that a renovator is still a house. It will likely have all the same problems as any other house (e.g., leaks, mould, etc.). So, you need to be prepared for that before making your purchase.
Financing & Budget Considerations
When you're considering buying a property that needs renovations, it's important to factor in the cost of those renovations into your budget. You'll also need to consider how you'll finance the purchase and the renovations.
If you're taking out a loan to finance the purchase, you'll need to factor in the interest rate and the length of the loan. For the renovations, you'll need to create a budget and stick to it. There are a lot of ways to finance renovations, including taking out a home equity loan, using a personal loan, credit card or your own savings.
You'll also need to consider the value of the property after the renovations are completed. Will the value of the property increase enough to cover the cost of the purchase and renovations? This is an important consideration when deciding whether or not buying a renovator is worth it. We always aim to add $2-$3 of value to the property for every $1 spent.
Planning The Renovation
When you're planning a home renovation, there are a lot of things to think about. You need to decide what you want to change, how much it will cost, and how long it will take.
If you're considering buying a fixer-upper, you need to factor in the cost of the repairs and renovations. You also need to be realistic about your own DIY skills. If you're not handy with tools, you'll need to hire someone to do the work for you.
It's important to create a budget and stick to it. Don't overspend on your renovation or you could end up with a house that's worth less than what you paid for it.
Some things to consider when planning your renovation:
What do you want to change?
How much will it cost?
How long will it take?
Can you do the work yourself or do you need to hire someone?
Do you need council approval for the changes?
Finding The Right Tradespeople
When you're ready to renovate your home, the first step is finding the right tradespeople. You want someone who is experienced, reliable, and within your budget. Here are a few tips for finding the right contractor for your home renovation:
Get recommendations from friends or family members who have recently renovated their own homes. They can give you first-hand accounts of their experiences with different contractors.
Once you have a few recommendations, do your own research on each one. Check out online reviews, compare prices, and look at previous work samples to get an idea of their quality of work.
Once you've narrowed down your options, meet with each contractor in person to get a better sense of their personality and whether they're a good fit for your project. Ask them questions about their experience, what kind of timeline they're working with, and how much they think the project will cost.
Make sure you're comfortable with the contractor before signing any contracts. This is someone who will be working in your home for an extended period of time, so it's important that you trust them and feel like they have your best interests in mind.
Taking the time to find the right contractor will save you a lot of headache and heartache in the long run. With a little bit of research, you can find someone who will help make your home renovation dreams come true!
Adding Value To Your Property
Adding value to your property can be a great way to make some extra money (known as 'manufacturing equity'), but it's important to do your research before you start.
There are a few things you need to consider:
The location of your property. Is it in a desirable neighbourhood?
The condition of your property. Is it in need of major repairs or renovations?
The market value of similar properties in the area. This will give you an idea of how much your property is worth and how much you can expect to make from it.
If you're thinking about adding value to your property, talk to local real estate agents to get more information and advice.
Buying a renovator can be an excellent investment for those looking to add value to their home and make some extra money. With the right amount of research, you can find your perfect project and turn it into something special.
While there are risks involved with investing in a property that needs renovation, if done carefully, these risks can easily be managed. Ultimately, buying a renovator is worth considering for anyone who wants to create their dream home or increase the value of their investment property.
If you are looking for a buyer’s agent to assist you with purchasing a home or investment property in NSW, QLD, VIC, SA or WA, please get in touch with Tome Avelovski and his team at Ready Set Buy - Property Buyer's Agents or give us a call on 1300 289 372!
Disclosure: The information contained in this blog is our personal opinion only and is not to be taken as financial advice, as we do not know your financial situation. Please speak with your accountant or any other licensed professional for specific advice based on your own personal circumstances. We will not be held liable for any losses.
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