The Pros and Cons of buying to renovate
If you’re currently looking at investing your money in buying a new property, you’ve probably already considered the potential benefits of buying a slightly older building and renovating it. While this is often a reliable way to turn a more profitable return on your investment, buying a ‘fixer-upper’ is not for everyone, and there are […]
If you’re currently looking at investing your money in buying a new property, you’ve probably already considered the potential benefits of buying a slightly older building and renovating it. While this is often a reliable way to turn a more profitable return on your investment, buying a ‘fixer-upper’ is not for everyone, and there are elements that you may not have considered. While every new home or property is going to need varying amounts of work in order to make it match your needs, buying a property that you know in advance is going to cost you a significant financial extra may be putting you off taking the plunge. Here then, are the most likely pros and cons that you ought to consider when buying a property to renovate.
The absolute best thing about buying a home to renovate is the sheer amount of control that it gives you. By making the commitment to renovation, you are able to design your new property in the best way for you. Whether you’re renovating as an investment in order to sell on, or designing the perfect home for you and your family, then making the effort to commit time and finances to a property can improve your chances of realising your ideas.
A lot of people opt to buy a cheaper home that needs work, simply due to the reduced costs. Property in need of renovation is consistently cheaper than those homes that are ready to move into. However, while it is cheaper, you may end up having to spend the shortfall on the renovations themselves. Taking advantage of a property development finance team can help you to clarify exactly what you need financially.
Going Over Budget
Even with all of the best planning in the world, you can still go over budget. This is why it’s important that you make detailed cost analyses throughout the purchasing and renovating process. It can be all too easy to dismiss smaller renovation tasks as minor impacts on your financial planning, but you can just as easily find that those small tasks can quickly turn into larger ones, and that’s when the hidden costs start to spiral and become an issue. However, with the right financial advice and the help of professionals, you can limit the risks.
Trades or DIY
One of the hardest decisions for many is that of whether to carry out the renovations yourself or to use tradespeople. Hiring professional carpenters, plumbers, and electricians can be costly, but they can also reduce the amount of time that it takes to complete your renovations. It’s important then that you do a cost analysis and decide whether your level of DIY skill is going to be enough for the tasks ahead. If you’re not very good with a hammer or can’t tell the difference between screwdriver types, then you’ll need to address your abilities and either make concerted efforts to learn those skills that you are lacking or use professionals.