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Buying a Home that Needs Renovation: How to Calculate If It’s Worth It

Buying a Home that Needs Renovation How to Calculate If Its Worth It - Buying a Home that Needs Renovation: How to Calculate If It's Worth It

The question is: buying a home that needs renovations or one ready to move in? It is one of the first thoughts when deciding to purchase a home. There is no simple answer: it all depends on the budget, the reform required or the necessity to move in as soon as possible.

The big difference: the price

Buying a property that needs reforms has its advantages. The main one is a lower price. Some studies suggest that, in Spain, a renovated home can be 25% more expensive than one that is not. In some cities, that figure even exceeds 30%.

Therefore, it is advisable not to rule out the possibility of buying a house that needs repairs, even if that implies money, work and some inconvenience. The key is to see the property's potential and assess whether the necessary improvements are not excessively expensive.

How to get it right when buying a home that needs renovation

Homes that other buyers have discarded due to their appearance can become real opportunities. As the first impression can sometimes be tricky, we should consider that an old-fashioned property can radically change its appearance with a perfectly affordable investment.

It is convenient to pay attention to what's behind that first sight. For example, the reform will be much more affordable if there is no need to touch the structure or the distribution.

Today, countless improvements can get made without the need for work. Some coatings are placed directly over the old ones, plus there are paints for all types of surfaces and plasterboard plates allow the creation of new divisions quickly.

Therefore, the first step would be specifying what reforms the home needs. The next thing will be to obtain an estimation of the cost of these works. Better to count on professional help, although online calculators help us get a quick idea.

However, we must consider that major reforms require other expenses beyond material and labour. For example, we could have to add municipal taxes and fees besides the construction project. In exchange, there are financial aids for home improvements.

At the same time, it is necessary to do a little prospecting in the real estate market in the area. It is about knowing the average price of similar homes that don't need repairs.

Finally, we must compare. It is worth considering buying a home that needs renovation when the expenses of the purchase and the restoration project are less than that of buying a property ready to move in.

An investment with return and profit

Buying a house that needs renovation allows you to adapt it to your liking. You can also gain profits from the increase in value after the reform, an increase in market value much higher than the amount invested in the renovation.

Real estate investors think of it, but it is also convenient at a domestic level. Given the case of needing to sell the property, the cost of the restoration can get recovered.

Whether you are looking for a home to live in or an investment, offers you a broad list of properties for sale. There are many opportunities, don't miss out!

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