Buying a house is one of the most important steps many people take in life, especially when they have to go into debt, i.e., when they have to take out a mortgage. It is a decision that can raise many questions and/or cause some headaches. To further complicate matters, we leave you with a question: is it better to buy a renovated house or one that needs renovating? There are advantages and disadvantages to either option, of course. Find out what they are.
“Many people look for an old house to restore because of the lower purchase price, while others prefer to invest in a house that is ready to move into. Each case is unique, and there are advantages and disadvantages to both scenarios.”
According to the Italian digital platform for the residential market that purchases properties directly and in seven days—operating in Portugal since January 2022—there are three points to consider in both purchase options.
1 – Assess whether the investment is worthwhile
The initial investment in buying a house to modernize is lower than that of a house that is like new, but the amount spent on renovation work, as well as the existence of unforeseen events, among other factors, may be higher than expected and outweigh the price difference for a remodeled house. What's more, construction costs are high and have been rising, which inflates the costs of renovations.
2 – Estimate the timing of the move
Renovating a house is a time-consuming and exhausting process and delays the new owners' dream of moving into their new home, so the condition of the property will dictate the duration of the work, which can “slip” in terms of time – taking longer than expected – and finances. “Changing the flooring, replacing the plumbing, or changing the windows to improve energy efficiency takes time and money. In addition, municipal permits may be required, depending on whether the renovation is more extensive or minor. On the other hand, when buying a renovated home, you avoid worries and can move in with your bags and belongings without further delay.”
3 – Customize the finishes
A property in need of renovation allows the buyer to choose all the details, but if it is still in the remodeling phase, buyers can also have a say in some of the finishes, adding that they can also choose all the fittings.
Source: Idealista/News