Things to Consider When Purchasing a House to Renovate

Things to Consider When Purchasing a House to Renovate
  • Opening Intro -

    Whichever house you buy, you will always need to do at least some kind of renovation.

    With new materials and the 2008 Economic crisis that significantly decreased prices of contractors' services, many people decide to buy old homes in order to renovate them or tear them down and build new ones from scratch.

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There are many different benefits that this practice brings, including a lower price, building and zoning permits that are easier to get and gas, water and electric connections that come with the old house. This means that even if you find a cheaper house that doesn’t look functional or attractive, you can always renovate it, customize it and make it look like the palace from your dreams.

Initial considerations

House renovation is not only good for customizing newly-bought old buildings, but also for making your current home safer, more energy-efficient and valuable. Good-looking and renovated houses deter burglars and squatters. Also people who invest money in renovation, spend less money for maintenance and energy bills, especially if they use eco-friendly construction materials. Since real estate market buyers usually judge a book by its cover, newly renovated homes can be sold much more easily and for much higher prices.

Know your budget and property market

Before you start this adventure you should have a firmly established budget. It should cover all the possible and impossible costs, including: cost of interests, moving, costs of renting another place to live while your new house is being renovated and many other big and small costs that usually don’t come to mind.

Two major costs of this long process are the purchase and renovation ones. That’s why you need to find good real estate agents and contractors that offer affordable prices, because all the money that you save can be reinvested during the renovation phase.

Assemble your team

In order to buy an old house that offers great opportunities for renovation you will need to carefully pick your real estate agent. Best candidates have lots of experience on the local real estate market and should provide credentials and lists of previous clients, whom you can ask for opinion. Other than a real estate agent, you will also need a conveyancing expert, who will take care of different legal issues, such as the vendor’s statement.

A key inspection on any older home is the foundation. Very critical before attempting any renovation.

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What to look for?

Some of the things that you should look for when buying a house that should be able to withstand a complex and elaborate renovation projects are:

  • Good and solid structure;
  • Basic layout with less party walls;
  • Lots of windows;
  • Space to expand your living quarters;
  • Windows facing north;

What to avoid?

Of course there are things that can make your renovation project more costly and complicated, which you should avoid at all cost. These are some of them:

  • Mold or mildew – finding the water source that creates mold or mildew can be an unsolvable puzzle that will cost you both time and money.
  • Historical buildings – renovating these homes requires special permits, and only buyers who are ready to invest a lot of money in a fixer-upper can afford all that.
  • Asbestos and lead-based paint – these dangerous materials require certified professional help, which can easily break your budget.

Location, location, location…

As you all know, location is one of the major parameters in determining real estate prices. Homes in suburbs that used to be expensive, are quickly losing their touch, mainly because of the growing gentrification trends that are targeting almost all world metropolises. If you want to become part of the ongoing gentrification process and earn lots of money while doing that, you need to determine which central city neighborhoods are going to become hipster hotspots in the future and try to purchase your fixer upper there.

Purchasing old buildings and renovating them is a great way to save money when buying a home for your family, while people who own bigger funds can also invest more money in such projects and expect much higher returns.

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Categories: Home Inspections

About Author

Lillian Connors

If one thing is true about Lillian Connors, her mind is utterly curious. That’s why she can’t resist the urge to embark on a myriad of home improvement projects and spread the word about them. She cherishes the notion that sustainable housing and gardening will not only make us far less dependent on others regarding the dwellings we inhabit and what we eat, but also contribute to our planet being a better place to live on.