"Renovators Delights" have always been popular, it’s a great way to grab a bargain and put your own stamp on a property. But buyer beware; there are many pitfalls to buying a renovation project.
• Renovating can be a costly business and once you start ripping the place apart, there’s no going back.
• Older houses in particular suffer from expensive problems such as dodgy electrical wiring or damp.
• As a rule, you should allow an extra 10% on top of your budget to cover these costs. If you don’t, you could find yourself in trouble, especially if the bank won’t extend your loan.
• Choose something that’s been solidly build, or as they say, has got good bones.
• Never over capitalise
• You don’t want to buy something that backs onto a freeway. You are never going to get top dollar for that no matter how much you spend on the renovation.
• And on that note, make sure you put your hard earned cash where it shows. Quality kitchens and bathrooms will always add value and a smart façade will make your house the envy of your neighbours.
• And don’t forget that renovations take time. If you tackle major works, you may have to move out and find yourself forking out for rent.
• Finally, do as much work as you can yourself. Often your biggest cost will be labour so any jobs like painting or prepping walls will save you big bucks.
• But be realistic about your skills, because there’s nothing worse than a dodgy reno!
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