Countless millennials are rising to the challenge and flipping their properties for a hefty profit in as little as ten years. But, major renovations of this nature aren’t for everyone, and many millennials also find themselves stuck with properties that remain less than perfect, but which continue to drain their finances. To avoid that, anyone thinking about picking up a project property should ask themselves some vital questions in advance. We consider what they are in this article.
By Team Savant
Image: Good Days Digital
Over the past 50 years, inflation has seen average house prices in the UK rising by as much as 158%. Because of this, the average millennial is taking seven years longer than their baby boomer counterparts to get a foot on the ladder. And, when millennials do take that plunge, many of them are having to purchase the only type of property they can afford – the dreaded fixer-upper.
Far from the picture-perfect first homes of the previous generation, these are properties that have often lain dormant for decades without access to basic things, like water, electricity, or even stable foundations. Instead of needing a few quick fixes, properties of this nature may require months or even years of work. And, that’s just to get things up to a half-livable standard.
Why are renovation properties so popular?
As mentioned, a large part of the popularity of renovations right now comes down to cost. According to the Independent last year, renovation requirements are one of the most popular features that modern buyers search for, and they make properties around £29,000 cheaper.
In a time of high mortgage rates and a continually uncertain market, these are important savings. For younger buyers, fixer-uppers that they can work on as and when they’re able are also an appealing way to increase returns, but at a reasonable rate controlled by their abilities and finances.
In an age of Pinterest-worthy home inspiration, the ability to personalise a fixer-upper is another tempting draw. Shell properties that need complete renovations are especially appealing as a blank canvas for modern buyers who can make their own marks in whatever way they see fit.
Can just anyone tackle a renovation?
Given their newly widespread popularity, you’d be forgiven for assuming that any old person can tackle a renovation. After all, if kids are managing it, then how hard can it be? In reality, harder than you’d think. Far from being able to simply watch a few YouTube tutorials, DIY renovations require hours of time, effort, and practice to get right. Further than that, individuals embarking on a renovation project of this scope should ideally possess skills such as –
Motivation: Renovation projects take time and ongoing effort. Without motivation, it’s unlikely you’ll see things through to completion.
Willingness to learn: For costs, it’s important to handle a lot of any renovation yourself. This requires a willingness to learn, embrace, and practise new skills that could take months in themselves.
Positivity: Things often go wrong during a renovation. Positivity is essential for keeping things afloat, and avoiding letting work get on top of you.
Stubbornness: A lot of people will say no when you ask them if something’s possible with a complete doer-upper property. To achieve your desired finish, you need to have a stubborn head and the ability to find a way regardless.
Like any new job, it’s also possible that you won’t develop these skills until you’re in the midst of a committed renovation that’s very much a financial sink or swim. Luckily, also like any new job, certain questions can help to determine whether you could manage a renovation or not, including –
1) Does your budget stretch to it?
Many millennials make the mistake of maxing out their budget on a fixer-upper that they then have no money to fix up. This can quickly become a problem considering that, according to Checkatrade, an average three-bed conversion can cost up to £138,800. Admittedly, many millennials are choosing to buy these properties while they continue to rent or live at home, which does mean that timelines aren’t always a pressing priority. But, if it’d take you upwards of ten years to even save up the amount needed for a complete renovation, then a fixer-upper probably isn’t the wisest financial choice. Instead, you want a sizable sum in the bank when you start, as well as a decent stream of money coming in throughout your project.
2) Do you have the time?
Everyone knows to think about money during a renovation, but few people consider the time a project like this might require. On average, whole-house renovations can take anywhere from 1-3 years to complete, and that’s if work is happening pretty much around the clock. When you add full-time jobs and general life stuff into the mix, you might end up doubling that time frame. And if you’re too busy to make time for your property, then nothing will ever get done. Instead, individuals considering a fixer-upper should make sure that they can at least dedicate their evenings and weekends to this task. The job will take a long time even then, but at least this means that progress will be ongoing. By comparison, busy professionals who don’t think they could spare much more than a few days a month for this task might be best off leaving a project property well alone.
3) Are you willing to learn?
Most millennials are only affording complete home renovations by doing things themselves. Admittedly, tasks like plumbing and electrics are best left to the professionals at all times. But, other things, from building walls to installing pir insulation and even plastering everything afterwards, can all be handled in-house with a little know-how. Unfortunately, to ensure a sturdy, quality property, these skills require a lot more than just one basic YouTube video and a book or two. Instead, individuals hoping to tackle these tasks will need to spend hours practising these skills and researching the best methods. If you’re willing to learn sometimes complex new processes like these, then by all means, renovate away. But, if the idea of dedicating that time to a skill you might only use once is off-putting, then perhaps renovations aren’t for you.
4) Do you have a vision?
Often when considering the practicalities of renovation, we only think about the work itself. In reality, though, the work of a renovation all has one sole purpose – to achieve a finished vision. To enjoy the full possibilities of personalisation when creating a home from scratch, individuals should ideally have a clear vision of the home they’d like, complete with Pinterest vision boards, favourite pieces of furniture, and even an understanding of the right light and ambience. This vision will be the driving force of the project, and will also inform every decision. By comparison, individuals who don’t have a vision of this nature may find motivation hard to come by, and may ultimately end up with a mismatched property that simply wasn’t worth the effort. In other words, without a clear vision, it’s hard to imagine a renovation working out in any real way.
5) What are your overall intentions?
Intentions also count a great deal during renovations. After all, like a vision, your intentions will fuel your efforts, as well as informing how well you ultimately manage this project. For instance, if you intend to live in this space, you’ll work hard to create a home, using quality materials, dedication, and a whole lot of legwork. By comparison, if you’ve purchased a fixer-upper solely to prepare the property for sale, you may struggle to muster love for the project, and may even end up cutting corners that prevent your money from coming back around. While many millennials do go on to flip houses, it’s therefore generally best that this first renovation is a personal passion project, as this is the best way to learn what truly works, and how much effort you’re willing to put into creating something beautiful.
What happens if you haven’t ‘got’ it?
Everyone’s different and, while there are obvious reasons to buy a renovation project right now, it’s important to realise that doing so might not always be best. Particularly if you don’t possess the skills listed above, going ahead regardless could see you stuck with no money in the bank. Either that or you may have to pay above market odds to entrust your renovation to the professionals.
Luckily, while renovations are the most practical way to make a notable leap into modern property markets, they aren’t the only option. The mass exodus of city living in recent years is a great example of how many people are finding more affordable, livable properties in cheaper locations.
However, if you’ve answered these questions and think that you have the right motivation, vision, and work drive to make a renovation property work for you, then it might just be time to get yourself on the property ladder at last.