So you’ve decided a fixer upper is the right choice for you. A great option for those who are looking to enter the market at a reasonable price, and a popular choice with first home buyers, investing in a renovator’s delight could be a strategic decision to get the home you’ve always wanted without paying a fortune.
Before you sign that contract and get started with your renos, take a look at our top tips.
Find that perfect ugly duckling
In our last blog, we touched on some of the things you will need to consider to make sure a fixer upper is worth it. While a good price is one of the biggest drawing cards of a fixer upper, it’s not the only thing you should be thinking about. Make sure that that the neighborhood, the level of renovations and your experience is all being taken into account to find the perfect ugly duckling for you.
In terms of finding renovators delights, often you can use search filters to find the right property. Use ‘renovators delight’ or ‘renovator’s dream’ in your search terms, lower your price range and consider deceased
Crunch the numbers
Before you put in your offer, you’ll need to crunch those numbers to not only find how much money you’ll need for renovations, but what you look to make back when you choose to sell. Take a look at newly renovated properties in your chosen suburb to get a feel for the quality of workmanship and their final sale prices.
Attend inspections so you can see for yourself the standard of the work, the finishing and fittings to determine how much you would need to budget for to achieve similar results. When assessing the budget, be sure to take note of which jobs will require you to hire contractors.
There are sites you can use that will show you the history of properties so you can accurately see the before and after prices that the renovations have achieved as well as the popularity of the suburb. All of this background information will help you determine the sale price you can afford and the type of budget you will need to save or apply for to complete the renovations.
Remember, your home loan will not cover the cost of the renovations, this will need to be a separate personal loan or you’ll need to use your own funds.
Focus on changes that make a big impact
Most home owners know that the bathroom and the kitchen are two of the biggest draw cards when it comes to choosing your next home. When renovating, choose to focus on areas that will make the biggest impact overall. Flooring changes, kitchen and bathrooms should be a big focus and every change you make should really focus on areas you can see.
If you’re going to do it, make sure and do it right
A renovator’s delight could pay off, but only if you do it justice. Give yourself enough budget to ensure quality fittings and finishes. After all, skimping out on a renovation will achieve nothing in terms of value adding and potential sale prices. This may mean you need to add more time to the schedule in order to save up more renovating money, or you may need to focus on one room and do it well rather than taking on multiple smaller jobs.