When the going gets tough, the tough get renovating.
That's the key takeaway from a new survey* of first-time buyers (FTBs) conducted by Nationwide Building Society.
It found that due to current cost pressures, two-thirds of FTBs are choosing to invest in unrenovated properties.
The buyers surveyed said they viewed renovation work as a savvy way to add value and stamp their own personal taste on a property.
And crucially, compromising on finish meant that FTBs could afford to live in the area of their choice, proving that location is still a critical deciding factor.
DIY versus major structural work
The most common renovation tasks carried out by FTBs included painting and decorating (57%), bathroom improvements (49%), kitchen upgrades (48%) and new flooring (46%).
Meanwhile, a brave 18% took on structural projects such as loft conversions and extensions.
Three-quarters of buyers said they ended up doing more work than they had anticipated. A quarter said they had done 'much more' work than expected.
Advice for buyers
If you're an FTB who is willing to do some renovation work yourself, the good news is you'll find some good value properties on the market.
However, it's helpful to be clear from the outset how much work you're willing and able to do, and whether that involves cosmetic improvements or major structural changes (that way, you can budget accordingly).
Consider commissioning a survey to gain a clear understanding of what you're getting into and make an informed decision.
Never make major structural changes without first seeking expert advice.
And, if you're renovating a property with a view to selling in a few years, stick to a fairly neutral colour palette.
Advice for sellers
As the Nationwide study demonstrates, there is demand out there for 'renovation projects'.
However, even if a property falls into the 'doer-upper' category, it's still important to market it carefully.
Buyers are looking for a blank canvas to add their own personal style. So have a ruthless declutter to maximise the appearance of space. Also, ensure the property is clean and light.
It's also important to be realistic about price. Talk to a good estate agent to get insight into the local market and to understand what properties in a similar condition in the area are currently going for.
If you're looking to buy or sell, get in touch with us. We're here to help.
*A survey of 2,000 FTBs.