Apartments in very poor technical condition are a good treat for opportunity hunters on the real estate market. Such locations are often located in excellent locations and, above all, they can be bought for free. However, this is only the better side of the coin. The second one is connected with a potentially huge risk of hitting a potential “mine”, which does not necessarily break the leg, but certainly does damage the investor’s budget. So how wise is it to buy a flat for renovation?
Assess the condition of the building itself
Ruined housing is often located in equally devastated buildings managed by communities. This is a potentially big problem, because it may turn out that a tenement house or a block of flats requires urgent renovation works, which will have to be thrown at all the owners. There will therefore be an additional cost.
Besides, if you want to buy such a flat for rent or for sale, you must remember that the first impression counts. If a potential buyer/tenant is greeted with a view of a collapsing ore, their well-being will certainly not be improved even by a beautifully renovated property.
Installations!
Devastated flats are usually several decades old or older, so don’t count on you to be able to use existing installations safely. You have to add the cost of their thorough replacement to the budget for the purchase and renovation of your property. It can even be tens of thousands of dollars! In addition, it may not be possible to renovate the installation in the apartment, because the sections located in the common area of the building will also need to be replaced.
Forget the crazy idea of covering your old installations with new plaster. Even if the buyer/tenant does not know, if there is a fire or a gas explosion, you will be responsible for it and will not be able to explain here that you did not know the condition of the installations.
Moisture
If the apartment is located on the ground floor and there are clear signs of moisture on the outside walls, you may be preparing for extra expenses. They will be connected with the insulation of foundations, which means huge costs.
However, if the apartment is located in the attic and the streaks are visible on the ceiling, you must of course suspect that the roof will need to be renovated, which is an exorbitant cost, especially in relation to the price of the apartment.
Debt and legal issues
Old, ruined flats can hide a confusing history of ownership. Therefore, be very limited in your confidence in anything that the intermediary or current owner says. It is necessary to commission a lawyer to provide an expert opinion on the land and mortgage register.
Thoroughly check if the apartment is not registered and if it is not burdened with debts. The same applies to the housing community – if it is heavily indebted, you can expect problems and forget that the building will be thoroughly renovated.
Of course, for a person who knows things, buying a flat to renovate can be a great business. However, if you are not experienced in this, you can get help from experts in construction and housing law to avoid making the mistake of a lifetime.
Super opportunity or maybe a super trap How to wisely buy a flat to renovate
