Why buying a home that needs some ‘TLC’ makes perfect sense
Buying a home
During the height of the boom, it seemed like everyone looking at buying a home was looking for a ‘doer upper’ to renovate and then sell in what was known as a ‘fix and flick’ strategy.
But as the boom began to show signs of slowing people began to move away from this approach. And whilst the market doesn’t currently lend itself as readily to a quick cheap reno and throw it back on the market type of approach, buying a home in need of some work is still a very wise move.
You’re probably familiar with the term ‘buy the worst house in the best street’ and this is certainly the approach I am advocating – to a point. But targeting homes that need renovating really does make sense from an affordability point of view.
It allows you to potentially buy in suburbs that might otherwise be outside of your price range. And whilst you might need to put up with a few shortcomings in the short term, in the longer term once your home is renovated it should grow dramatically in value. And this is the beauty of buying in a good suburb, is that often those homes that require some renovation work can be as much as a third cheaper than the best homes in that suburb.
Homes like this often attract less interest as so many people are looking at homes that suit their immediate needs. Those that can’t be bothered renovating or fixing a place up will often steer clear of these potential gems. And of course, less competition generally means better prices.
Location, location, location
As mentioned popular suburbs tend to experience consistent growth in property prices because they are in great locations. Essentially it costs more to buy there because more people want to live there. Buying a home that needs some work can enable you to enjoy the benefits of living in a desirable suburb that you might not otherwise be able to afford giving you all of the benefits that location offers at a reduced rate.
Create your ideal home over time
Whilst you may need to compromise initially, buying a home that needs work enables you to renovate the home to perfectly suit your particular lifestyle needs.
Often people buy a home and then adapt their lifestyles to suit the home. Taking an ‘if it ain’t broke, don’t fix it’ type of attitude they can be hesitant to renovate, certainly in terms of a major renovation. However buying a home that is a bit run down means that there is nothing to lose and everything to gain from renovating and if you’re going to be renovating anyway, you should make sure that you’re getting your plans done by an architect that can create a design perfectly tailored to your lifestyle needs.
A word of advice when buying a home
So as you can see buying a ‘ffixer-upper can be a really smart move, however, caution needs to be exercised to ensure you don’t buy yourself a lemon.
It’s vital that you have a building inspection done to ensure that the home is at least structurally sound to start with unless of course, you’re intending on demolishing and building new. But even then you need to make sure that you will be allowed to make the changes you want to make under local planning laws. Properties in particular suburbs of a particular vintage are often not allowed to be demolished and there can be all sorts of limitations on how they can be renovated as well. So it pays to do your research before committing to buy.
To help with this you really should invest in our Pre-Purchase Design Advice service. As part of this service, we will explore your goals and then consider whether the property you’re looking at lends itself to achieving those goals. As well as looking at your proposed properties potential we will also discuss likely costs, potential restrictions and any site issues that may be of concern.
So if you’re looking to buy a property keep an open mind to buying a ‘doer upper’. It could be everything you’ve ever wished for and more. And when you think you’ve found the right place for you, contact dion seminara architecture and let our Pre-Purchase Design Advice service do the rest.