Would you buy a project property? - Mortgages - News - Moneyfacts

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Would you buy a project property?

Would you buy a project property?

Category: Mortgages

Updated: 31/05/2016
First Published: 31/05/2016

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Buying a property that needs a bit of TLC (or a complete overhaul) is a great way to cut down the upfront cost of buying and it also gives new owners the chance to make their mark on their new home. This may be a daunting task for some, but it seems as though more and more of us are prepared to get our hands dirty and undertake some degree of work to make a property 'perfect'.

Home improvers

Brits certainly don't appear to be fazed by a property in disrepair - according to figures released by Zoopla, more than seven in 10 of us would willingly opt for a property that needed a helping hand rather than a 'done' building that was ready to move in. This work isn't necessarily 'easy' DIY either; 33% of respondents said that they are willing to take on major jobs, such as structural work, and one in five of these would do it alone without professional help. More run-of-the-mill DIY tasks that Brits are happy to get stuck into include decorating the walls (14%), replacing the flooring (12%) and landscaping the garden (9%).

Alongside this new-found love of working on a project home is a greater willingness to spend money on sprucing up the property, with the average renovation budget now standing at £17,765. Figures from Lloyds Bank also show that we are spending ever greater sums on DIY - spending reached £5.8 billion last year, up 13% and the highest level since 2008. This increase in spending is in line with the resurgence of the property market since the financial crisis, and reflects the strength of the sector today.

Indeed, Zoopla's research showed that many home buyers think carefully about the potential effects of DIY changes on the re-sale value of their home, with 61% considering this before they start work. Another 63% of renovators also keep their home interiors 'evergreen' in an attempt to keep the future selling potential of their home at its max.

However, the research also flagged up that enthusiasm for DIY tasks can quickly flag, or lead to other jobs, which can mean that the work never ends: Zoopla discovered that 64% of those questioned said that there were always more improvements to do no matter how many changes they make, while another 24% admitted that they have many DIY projects that haven't been finished.

Getting your home up to scratch

If you want a project to get your teeth stuck into, then it's important to have the right mortgage funding your purchase - a cost-effective deal with low monthly repayments means that you will have more money to spare to fund your DIY activity, so check out our mortgage best buys to find the perfect deal for you.

It's also a good idea to make sure your home and buildings insurance is up to scratch before you undertake any major work. This way, if something was to go wrong, you can rest assured that you won't be out of pocket. It's also important to make sure that any new DIY equipment you purchase is covered under your contents insurance policy. If your deal doesn't cover the necessities, start your search for a new policy using our home insurance comparison tool. Once that's sorted, you can don the overalls and fire up the tools ready to start your property project.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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