Buying a property in need to work will not appeal to everyone. Some properties need major maintenance and construction work before becoming liveable, which for many who need somewhere to move into straightaway, is not an option. Some fixer-upper properties on the other hand will not need as much work and will be perfectly liveable and instead just requiring visual updates.
The idea of buying a property and doing it up to make it your own is an appealing idea and allows you to really put your stamp on your new home. Whilst the idea is attractive, it’s not something you want to get into and then realise is not for you. You will need plenty of time and extra money to get the property to the standard if you want to be cost-effective, you’ll have to do most of the manual labour yourself.
In this article, we’ll walk through what’s involved when buying a fixer-upper to help you decide whether it’s right for you.
Buying a fixer-upper
Buying a property in need of work is a similar process to buying a regular property. Depending on the extent of the required work, the asking price will be lower than a similar property that has been done up to a good standard. This will give you some money to play about with in order to do the property up. However, you should work out in advance how much money you would save in place of buying a recently refurbished property and how much you’ll need in order to get the property to the standard you want it.
Doing up the property yourself
This is by far the most lucrative way of financially benefitting from your purchase and adding value. If you have never done a renovation project before, you need to be aware that it can be an extremely time-consuming process. You will need to source all the necessary materials and tools and have a lot of spare time to do the work. Property developers who do all the work themselves usually do this as a full-time job so it will be difficult to do this whilst juggling a career and other commitments.
It’s worth doing your research prior as to what will be involved. You don’t want to do a poor job of the renovation, otherwise, you’ll have wasted time and money. Take a look at some tutorials on YouTube before you start so you know what you’re doing.
Hiring a professional to do the work
While hiring a tradesman to do the work will often ensure a high standard of quality and save you time, it will be much harder on your wallet. Having said this, the added value may still be worth it as your property will increase in value the greater the renovation.
If you decided to go down this route, make sure you use a reputable tradesman or company to do the works. You don’t want a cowboy builder starting the job and then going AWOL halfway through!
How much will it cost?
The figure will inevitably vary from property to property and with the extent of the work you’ll be undertaking. You should speak to an architect or a builder and get a few quotes as to how much it’ll cost.
To give you a rough idea, a loft conversion will cost approximately £23,000. If you’re looking to update the whole property, you’ll be looking to spend approximately 10% of the property’s value, but this is still before you invest in something like a brand-new kitchen, bathroom or extension.
Buying a fixer-upper is largely dependent on your personal situation and whether you have experience doing DIY or not; time is also an important factor and whether you are willing to live in a construction site for a period of time. If so, buying a fixer-upper can save you money and add capital value to the property, which should net you a decent profit when you come to sell.
This article was written by an online estate agent House Sales Direct. If you wish to sell your house fast and for free, then head over to the House Sales Direct website for more property related information and enquiries.