When you’re hunting for a housing bargain, many will suggest you look for the “worst house on the street”.
The idea is that you buy into a good area without paying the premium price that comes with that.
All well and good, but only if you do your homework. Otherwise, a do-up that at first looked simple can quickly spiral out of control.
You don’t want mounting bills and professionals fixing a job you’ve botched.
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If a house is as simple as just looking a little dated, that’s your perfect do-up.
Fresh paint will give your house a glow-up for the ages.
My first house was in a great part of town, but a bottom flat with dingy brown-pink walls.
A few coats of stark white paint bounced light all throughout the house, making it feel bigger, more modern, and much lighter.
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At the other end of the scale though is where you’ll need to carefully do your homework.
Things like repiling or electrical work are red flags, and a good time to get a professional’s opinion.
This is why you should always get a builder’s report on a house you’re considering buying.
On the latest Cooking the Books podcast I talked to Auckland Master Builder’s President Tony Pexton.
He says people regularly try to guess-timate how long a fix will take, and how much it will cost. But getting quotes from professionals will at least let you know what you’re getting in to.
He also makes the point that you should check what changes will need approval from your local council. Council consents can take a long time, and be expensive, but without them selling your house in the future will become a nightmare.
Even certain types of insulation will need council approval.
But the biggest red flag in a do-up house has to be moisture issues. While you’re bringing in that builder, make sure they’re equipped to do a moisture test.
Not all builders will do that as standard practice, but you should do it, unless you’re willing to gamble with your investment.
Pexton says fixing a house that’s damp, or worse, leaking, can cost more than simply starting over and building new. He says moisture, foundations, and electrical are big ticket items, but water proofing a property is the “monster” one.
Anything more superficial is case by case, but do remember that kitchens and bathrooms can turn costly.
If you plan to live there a while, it might be worth it, but don’t bank on it boosting your resale value over what you’ll spend doing it.
There’s a lot of satisfaction to be had in finding your perfect do-up, and getting it how you want it. Just make sure you don’t bite off more than you can chew.
Listen to the podcast below
Listen to other episodes in the series:
Episode 1: Buy v rent
Episode 2: Saving for a deposit
Episode 3: Negotiating a mortgage
Episode 4: The power of location
Episode 5: Tricks for paying off the mortgage faster
Episode 6: How to crush the debt
Episode 7: Apartment v house
- Frances Cook is the host of the personal finance podcast Cooking the Books. She is not a financial adviser, and all information is general in nature. For individual advice, see a financial adviser. Listen to her podcast on OneRoof.co.nz
