Are your DIY skills up to the task?
Cutting costs by doing some of the work yourself can make purchasing a doer-upper more appealing. Be realistic though. Do you have the time and the skills to do the necessary renovations? If you don’t, consider staying away from a doer-upper home. Hiring someone to do most of the work for you may cost more than the renovations are worth in value.
The pros and cons of getting professionals in
While getting professionals in to help will cost you more, it may make the process faster. Having the work done properly, with the right consents, could be better in the long run when the time comes to sell.
It is important to have a contingency budget as part of your total renovation budget. This money is usually set aside for unexpected costs or if issues arise that you haven’t planned for.
Dealing with disruption
Consider your living situation during the renovation of a doer-upper. Will you be living in the house while it is being worked on? Or will you have to stay elsewhere?
It’s all very well as a single person camping out and moving from room to room while renovations take place in different parts of the house, but this may be more difficult for a family or people with pets.
You should also think about when your renovations will take place. Camping onsite during the summer months may be tolerable, but when winter comes around it may not be so appealing.
You might need to arrange alternate accommodation
If a doer-upper needs a complete renovation, you need to consider where you will live while the work takes place. You could find that you’re paying for short-term accommodation or a rental property on top of your mortgage repayments – as well as factoring in all the renovation costs – and this could increase your debt.
Weigh up the overall impact of a renovation
It’s also a good idea to weight up the limits of your emotional energy. Inevitable project pitfalls, delays and all the decision making can be exhausting and tough on relationships.
Is a doer-upper home for you?
Deciding if a doer-upper home is worth buying is heavily influenced by the estimated cost of renovations.
To work out whether a doer-upper home is a worthwhile purchase economically, it’s wise to subtract the renovation costs from the home’s projected market value and deduct five to 10 per cent more for possible complications and other possibilities. This will give you a clear picture of whether a doer-upper project is for you.
The key thing to remember when considering buying any property is to make sure you’ve done your due diligence first and don’t forget to consider the emotional and economic factor too.