FINDING A DIAMOND IN THE REAL ESTATE ROUGH
How do you know if a property is actually a “good buy”? Finding your Diamond In The Rough is a 3 step process and Dwell Building Services comes in right at the end…here’s how you get there:
There’s a lot of work you do before you start your house hunt to make sure you’re looking in the right price bracket and area for you, and that’s a different blog. Once you’ve narrowed it down and worked out your lane, there’s still more work to do.
Most people can decide if a property is a good buy for them within about 30 seconds of walking through the front door. Vibe check (part 2). Only you can answer this part for yourself!
Eventually though, you have to graduate from Vibe to Evidence (part 3). That’s where we come in!
1. The stuff you can’t see
(Is this a good buy?) The Basics: You need to know what you’re up against, as far as Major Defects.
Structural movement. Moisture issues. Waterproofing failures. Termite damage.
If the above mentioned problems are hidden, that’s where the risk lives and if the above crop up, you would be within your rights to walk (or run) away…
2. The cost to get it where you want it
(Is this a good buy?) Every buyer has a Vision.
New kitchen, fresh bathrooms, maybe knock out a wall or two…adding capital value to your property, giving it a facelift, you don’t like that shade of pink tile…
Most people underestimate renovation costs by a long way. As we have recently left the actual building game, we can confirm that the cost of renovating is only going up but the general public is not aware of this reality. The fault here lays squarely at the feet of shitty TV shows like The Block.
What feels like a “cheap cosmetic update” can turn into an ongoing nightmare sequence…result - overcapitalisation.
3. How forgiving the property is over time
(Is this a good buy?) No house is maintenance-free, but some properties are far more forgiving than others.
A well-built home with minor/cosmetic issues? That gives you time to build up you war chest.
A poorly built or poorly maintained home? That demands money immediately. The difference isn’t always obvious at first glance—but it matters more than anything else when it comes to ongoing maintenance.
The takeaway
A “good buy” is a moving target concept, when it comes to property. If you are going to the wall on certain things, like the location or price point, then you are going to trade something away. Just make sure you don’t trade your peace!
