Buying a Renovators Delight� � (Part Two)

Unrenovated properties attract those buyers keen for a bargain. However, many mortgage-laden buyers have learn their lesson when it comes to trying to make ‘quick’ money on a house that really should be bulldozed. Unless you are a builder, you must think wisely or it could be an expensive proposition.

However, for owner-occupiers prepared to live through the difficulties of the property cycle, the dollars do not have to stack up in the same way as renovating to on-sell quickly. At domain.com.au I found the perfect “renovators delight on 1738m2”, so you could let your imagination run wild. OzFreeOnline.com is a site where you can register, lo in and search thousands of properties. You can even advertise your own old home free on this site, so do take advantage of this offer.

Many people still love buying homes with potential and drawing a blueprint that contains all their dreams. At the same time, most people must be aware of how expensive and time-consuming renovation can become.

The prospect perhaps even five years ago where people bought an unrenovated property and refurbished it for a ‘quick’ capital gain has been shattered, and there is a toning down for renovations compared to the peak in 2003-04. So is there logic in those who may be misguided buyers who opt for a quick turnaround?

I personally know of a couple who bought a beautiful terrace in 2004 for $527,000. After a year of renovations and $75,000 later, they were well behind and found that they had spent too much. They found themselves in a hole and had to sell the property the following year for $477,000.

The spending on renovations is going on in the more expensive suburbs, where if you add more space you add more value. Renovating to create open-plan living spaces with bi-old doors, huge windows, and a new European kitchen and fabulous large bathroom can add hundreds of thousands of dollars in value to unrenovated houses, but might cost only $100,000 to $200,000 to do. Moreover, many buyers would rather do a renovation themselves than pay for someone else's ideas and style.

Amos writes articles and press releases for OzfreeOnline - this piece she made served as an article exclusive for Online Real Estate- which offers a comprehensive list of office & commercial real estates, apartment and house for rent, online real estate, house for sale, real estate property listing, real property search and an apartment finder to thousands of properties in Australia.