Buying and Renovating Tips

[TheSecret]

Buying and Renovating Tips

With property prices spiralling out of control, many home buyers have found that the only property they can afford are those needing renovation. Perhaps that’s the situation you’re in, too. While such a tactic will get you into a home, it still is a decision that must be entered into with eyes wide open.

If you’re considering buying and renovating, here’s some advice designed to keep your plans on track and within budget.

Create a separate budget

Before you even start looking for property, it’s crucial to put together a separate renovation budget. And because you never really know what you’re in for, always factor in additional funding to cover those unexpected costs that almost always crop up.

Knowing how much you’re able to spend on renovation really helps when it comes time to choose a property. If a home needs major structural work and that’s not within your budget, the property may not be right no matter how low the asking price.

Do your research

Always be suspicious of a property with an unusually low asking price, especially if it’s been on the market for a while. There’s usually a reason for that low price and you need to know what it is. Unless you have a sizeable budget and a lot of patience, it’s probably best to avoid property requiring extensive renovation.

But that’s not always the case, especially if the property is located in a desirable neighbourhood. If you can buy a home, make the required renovations and afterwards still sell for a profit, then the property might be worth a closer look.

The bottom line is this: Always know the full extent of the necessary renovations. Once you know what’s needed, determine the work you can handle and what you’ll need to contract out.

Seek expert advice

If you’re unsure the extent of renovation required or the costs associated with a certain type of renovation, you can always obtain quotes from area professionals. Besides obtaining a more accurate estimate of costs upfront, you may gain some “insider’s” knowledge which is almost certain to help later on.

Check permitting requirements

Don’t forget to check local permitting requirements before considering any type of renovation. Permits can add unexpected costs and time delays; two problems that can drastically alter your budget as well as your renovation plans.

Remember this isn’t television!

When you watch those popular “do it yourself” home renovation shows such as Property Ladder you might think the work looks easy. But what you don’t see are the many hours of footage that have been edited out. While it appears to take the homeowners just 30 minutes to tear apart the bathroom and put it all back together, in reality that renovation probably took many days and involved many hands. Always make sure you can commit not only the money but also a substantial amount of time to complete the necessary renovations.

Buying and renovating property is full of challenges and isn’t right for everyone. But if you’re up for a challenge, the results are often well worth the effort.

[Jay]

Very helpful, thanks

[ajrimmer33]

A good article, which I can say I had the benefit of doing some years ago. After the mortgage was in place (nice and cheap in view of the state of the house) and an extra secured loan, we were ready to go. The house was a wreck but fortunately after checking everything meticulously, the house structure itself was fine and very little significant work had to take place on the house. The house just needed some heavy duty redecorating and some double glazing to save on the heating bill, which I assume was enormous before in view of the state of the windows. On the plus side, and luck you may say, we bought the house in 1999, just as the world market in general and the British housing market in particular was going through a strong period of growth. With the refurbishments, and a bit of economic fortune, the house doubled in price after just 3 years. If I can in the future, I will only buy a wreck. They have so much more character than the standard new build and the house feels a lot more like it's actually yours after the work is done. Good luck on any house buying where the house needs a lot of work, bear in mind the warnings that the main article gives, but note that if it goes well, it will go really well.

[NoDepositRealEstate]

You are so right about the hours edited out!!
Still, the sense of achievement helps to dull the hours of pain once it is all completed

Also, until you have done it you will struggle to come up with an accurate budget, so best double whatever you think it might possibly cost. In the unlikely event you have money left over it will then be a happy bonus.