Whether you are a first time-time buyer looking for an affordable way to get on the property ladder, an investor hoping to add value, or someone who loves the idea of transforming a house into a dream home, a doer-upper offers plenty of opportunities.

Buying a doer-upper, or in other words, an older home in need of some careful renovation, can be an appealing alternative to purchasing a property that is ready to move into, but it is definitely not for everyone.  
While the prospect of buying a home with ‘potential’, can be exciting, it can also come with its fair share of challenges.  Unexpected costs, delays and the sheer amount of work required can turn a promising project into an overwhelming one.

With Ireland’s competitive housing market, many buyers are considering doer-uppers as a more affordable way to hop onto the property ladder.  But how do you know if it is the right choice for you?

The Pros of buying a doer-upper:

1.    Lower purchase price: An obvious attraction of a doer-upper, is that they typically come with a lower price tag.  Properties in need of renovation often sell for significantly less than their ‘ready to move into’ counterparts and so can be an excellent option for first time buyers, or indeed those on a budget who are looking to secure a home in a desirable location, that might otherwise be out of reach.

2.    Potential for Increased Value: A well-planned renovation can substantially increase your property’s value.  If you buy well, you can build significant equity.  There are buyers who purchase doer-uppers, complete the renovations and either sell at a profit, or refinance to release equity for a further investment.  Simple improvements such as updating kitchens and bathrooms, improving insulation and converting attic spaces can dramatically enhance your home’s worth.

3.    Personalisation and character:  Unlike new-build homes where everything is predetermined for mass appeal, a doer-upper allows you to truly put your own stamp and character on a home.  From layouts to finishes, you can design your home exactly how you want it, making it a space that is uniquely yours.  Older homes often have unique architectural features, such as sash windows, fireplaces or high ceilings, and when restored, add significant charm and character giving your home a timeless feel.

4.    Less Competition:  The property market in Ireland particularly in major cities like Dublin, Cork, and Galway is highly competitive. Well maintained homes in prime locations often attract multiple offers, leading to bidding wars. However, doer-uppers, particularly those in need of significant work, tend to have fewer buyers competing for them. This can give you more negotiating power when making an offer.

5.    Grants and Incentives: There are various grants available for home renovations, particularly for properties that require energy efficiency improvements. The SEAI (Sustainable Energy Authority of Ireland) offers grants for insulation, heat pumps, and solar panels which can offset the renovation costs.  There are also government initiatives such as the Vacant Property Refurbishment Grant, which provides funding for turning vacant properties into homes, and investigating these options could make your renovation more affordable.

 

The Cons of Buying a doer-upper:

1.    Hidden costs: While the initial purchase price may seem appealing, the costs of renovating a doer-upper can quickly add up.  Unexpected structural issues, outdated plumbing or electrics and damp problems, can all increase your renovation budget significantly.  It’s crucial to get a full structural survey before purchasing a doer-upper to ensure you are aware of any major issues.  Without proper planning, a project that initially seemed affordable, can end up costing more than buying a home that doesn’t require any work.

2.    Renovation Stress and Delays: Taking on a doer-upper is not for the faint hearted!  Even if you plan well, renovations often take longer than expected due to unforeseen issues, planning permission delays or contractor availability.  Living in a construction zone can be stressful, especially if you are trying to juggle work and family life.  If you are planning to do some of the work yourself, you’ll need to be prepared for long weekends and evenings of DIY, potential mistakes and the need to learn new skills.

3.    Difficulty getting a Mortgage:  Financing a doer-upper can be more complicated than purchasing a ready to go home.  Some lenders are hesitant to approve mortgages for properties that require substantial work, particularly if the house is uninhabitable.  You may need a renovation mortgage which releases funds in stages as work is completed.  This can add complexity to the buying process and requires very careful financial planning.

4.    Planning permission and regulations:  Depending on the extent of your renovations, you may need planning permission, which can delay your project.  If the property is a protected structure, you may be restricted in the types of changes you can make, and renovations could be more costly due to the need for specialist material and expertise. It is essential to check local council regulations before purchasing to avoid unexpected legal and bureaucratic obstacles.

5.    The risk of overcapitalisation:  Overcapitalisation occurs when you spend more on renovations than the property is worth post renovation.  While you may want to create your dream home, if the total cost of purchasing and renovating exceeds the property’s market value, you could struggle to sell it for a profit in the future.  To avoid this, research property in the area and set a realistic renovation budget that aligns with the potential resale value.

Is a doer-upper right for you?

Deciding whether to buy a doer-upper depends on your budget, patience and willingness to take on the challenge of a renovation project. If you are financially prepared, have strong vision and are willing to take it on, a do-er upper can be an incredibly rewarding investment.
The key to success is thorough research, careful budgeting, and a willingness to tackle the unexpected. So whether you choose to restore a charming old cottage, modernise a 1970s semi-detached or completely transform a neglected townhouse, the satisfaction of creating a home that is uniquely yours, can make all the hard work worth it.