Fixer-upper or move-in ready
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Buying a new home means making decisions. Where you want to live, what type of home you require, how much space you need, what you could afford to spend, etc. You could also add to this list the choice between a place that is move-in ready or a fixer-upper that needs some work. Let's look at the pros and cons of each, and a few suggestions to help you make the best choice.
Move-in ready
If you are keen to enjoy your new space immediately, then a move-in ready home is the one for you. It's a good choice if you're not keen on the upheaval of renovations, plus they can be costly and time consuming.
Pros
- You can move and settle in as soon as the sale goes through.
- You can expect to find everything in good working order and you are unlikely to face any hefty maintenance or repair costs in the near future.
- Your weekends won't be spent picking out taps and tiles and paint palettes! You could relax and focus on setting up your new living space the way you like it.
- Apart from your bond repayments and the regular running costs of the property, you won't have to budget for anything big.
Cons
- The seller may be less negotiable on price if the property has been well cared for or recently renovated.
- Fixtures and furnishings might not be exactly to your taste and it may be a while before you could justify or afford making changes.
Fixer-upper
Buying a place that needs a bit of work can be an exciting project and a great investment, but be realistic about what you're getting into and make sure you are able to afford it in terms of time, money and the potential daily disruption.
Pros
- You could get the property at a good price, especially if it requires extensive work or renovations.
- Your asset could gain greatly in value once it has been fixed up. For example, kitchen and bathroom renovations are widely considered to boost resale value.
- The property is a blank canvas that you could renovate and decorate according to your personal style and taste.
- You don't have to start renovating right away - you could live in the property for a while to get a better sense of how the space could be adapted to your needs and lifestyle.
Cons
- From TV shows about home makeovers you will know that renovations often take longer than planned and seldom remain within budget.
- Renovations can run into the hundreds of thousands if you need to replace big ticket items like a roof or flooring, or rewire the property.
- While sellers are required to provide a full list of defects, they may not be aware of certain problems at the time of sale - especially if the property is old. Sometimes these are discovered only once renovation work starts and this could result in costly and time-consuming additions to your project.
The choice between fixer-upper and move-in ready property depends on many factors, including budget, timeframe, life stage, future plans, and more. Whichever type of home you decide to buy, BetterBond will partner with you, either by getting you the best deal on a bond for a move-in ready home, or securing your building loan for that fixer-upper that promises to be your dream home come true. We're with you every step of the way.
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