Darwin Blog

There are many different reasons for people to purchase a fixer-upper. Some buyers can't look past the land size or the location despite the dwelling, others are looking to get their foot on the property ladder and are sold on the price. Many are driven by ambition and love the idea of a project.

Whatever the reason behind your decision, there are a few things to consider when purchasing a fixer-upper home.

1. Renovation cost

The end goal when buying a fixer-upper is to have a home that is worth more than what you paid. While you can make the original purchase at a much lower price, you also need to consider the additional cost of renovation and repairs. When working out your budget, it is best to leave between 10% - 20% buffer for unexpected costs.

2. How are its bones?

A building inspection report can reveal if the property you are looking to purchase has "good bones", or is structurally sound. A home with good bones is less likely to cause headaches during renovations. 

3. Rules & regulations

Depending on the particular property and where it is located, some renovations may be subject to rules & restrictions. Some councils, for example, do not allow the building of extensions; and some properties are heritage protected, therefore the façade can not be changed. It is best practice to check ahead of time to ensure your plans are in line with council regulations.

4. Timeframe

Be particular and detailed when assessing what renovations you intend to carry out and how much time these will take. This will help you set a realistic timeframe on when you can move in or look at reselling. If you are planning to live 'on site' while renovations are going on, you'll want to account for how long you will be able to manage without access to/use of certain rooms during their makeovers.

5. Your ability to handle prolonged stress

The ongoing maintenance and repairs that come along with home ownership can be stressful enough, but the stress of renovating is a whole different ball game. Mentally, physically, and emotionally - fixing up a fixer-upper is one of the most taxing projects you can undertake and it is not for the fainthearted. Carefully consider your ability to handle the stress of renovations for your expected timeframe before making the purchase. It's okay if it's not for you!

A fixer-upper can be a great way to break into the market, especially at a time when buying an established home can feel out of reach - just make sure you are taking all the factors into consideration.

For all your real estate sales and property management needs in Darwin and Palmerston, or to find out about the auction process, contact Raine & Horne Darwin on 08 8941 8941.