First-time buyers struggling to take that first all-important step onto the property ladder could find it easier to achieve if they decide to go for a property in need of serious renovation.
New research from Direct Line Home Insurance has revealed that some houses – those that need major structural work carried out – can be bought for £40,000 less than the market average. And fixer-uppers – those that need major works – can be bought for about 17 per cent less.
And given the fact that 62 per cent of estate agents think that buyers should be able to capitalise on price reductions if renovations to a property are required, as well as making a profit if the house needs structural work carried out, it could be the perfect way for people to invest in their first home.
“Fixer uppers are still a good option for first-time buyers and there is still money to be made for those looking for a challenge by renovating a property. However, homeowners should keep the costs of major work in mind and ensure they are not taking on too much work,” head of home insurance Jeremy Bristow said.
The Guardian has a very helpful article for anyone considering purchasing a house that might need a bit of work done to it. Author of Renovating for Profit Michael Holmes explained that buyers should keep their eyes peeled for the worst house they can find on the most affordable street for them, as well as talking to structural engineers and builders when devising their renovation budget.
Apparently, project managing it all yourself could help you save between 15 and 20 per cent of the total cost, but don’t forget that it will be a full-time job and you will struggle if you have to work at the same time.
He advised prospective buyers to ensure there’s enough money in the budget for structural repairs, as well as considering space, functionality and layout when designing internal spaces.
It always helps to read about other people’s success stories and failures, particularly when it comes to something like this that you’re unlikely to have attempted before – especially if you’re a first-time buyer.
You’re also sure to be tempted to do some of the work yourself to really put your mark on your new place and the good news is that there are lots of videos online available to help you if you need some advice or a tutorial or two.
But don’t be tempted to do work on the property that you don’t have the skills and experience to attempt, especially if it relates to plumbing or electrical jobs. You need to make sure that all work carried out is safe and that you’re not going to create more problems than you’ll solve by doing it yourself.
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