Property prices have risen right across Australia in the last two years, especially if you want a home loan to enter the Sydney or Melbourne markets. While expensive, the lifestyle on offer in these cities is just too attractive to make people look elsewhere for a home. One method of getting property that may work buying a fixer-upper. You can experience value growth while customising the home over time to your exact specifications, while also avoiding breaking the bank on the purchase. Here are some things to consider.

Affordable homes in desirable locations

Finding a fixer-upper home in an inner-city suburb can be a real game changer for your property plans. As always, location is key, and areas near the city will likely increase in value over time. Just make sure you aren’t right beside a new highway development or rail line, as that can be a deal breaker when you try to sell.

The location of a fixer-upper can also give you a guideline as to what style of renovations to undertake. If it’s a neighbourhood where everyone drives, then it might pay to added a driveway and garage to the property.

Is it livable?

Sometimes you can find a real ‘rough gem’ property, something that is in a growth area but doesn’t look like it would be habitable. Make sure to get professionals to inspect a fixer-upper extensively before you put pen to paper. It’s all well and good finding something very affordable, but you don’t want it collapsing around you after only a fortnight.

You can be creative

The great thing about fixer-upper homes, especially if you are in it for the long run rather than re-selling, is that you can tailor the home to your every need and whim, as long as it is within budget. Get creative with the layout, and you might just have a future luxury home on your hands. But be patient and don’t blow the budget.

You can contact a Smartline Mortgage Adviser on 13 14 97 for home loan advice. Or complete our call request form and we’ll call you!

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DISCLAIMER: The information contained in this article is correct at the time of publishing and is subject to change. It is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, Smartline recommends that you consider whether it is appropriate for your circumstances. Smartline recommends that you seek independent legal, financial, and taxation advice before acting on any information in this article.