Buying renovated property? Here are 3 advantages.
I have purchased more new properties versus secondary renovated properties thus far. I own residential properties in 7 different cities / towns in Malaysia as of currently. Whether secondary property market or even new properties, both have their own advantages. For this article, from my experience with renovated units, let me share at least 3 advantages. To show that I am not just writing without proof, I will share 3 different renovated units I bought. Here are some of the renovated units I have purchased since 2002.
My first property was a renovated unit (way back in 2002)
The first time I bought a property, it happened to be a partially-renovated unit. The owner sold it because he was moving out to stay at the upper floor of his newly bought shop-house. It was walking distance to his shop-house too. He extended the bathroom in the master bedroom which meant that I saved many thousands of ringgit in advance. Without this extension, I would have to do it because the toilet design from the developer for the master bedroom was extremely poor.
My first property outside the state I work in was also a renovated unit
I was still working in Penang when I decided to invest into a property outside Penang. It was a condo in which my wife’s best friend rented a unit. We always stay at her place when we go KL then. My first condo in the Klang Valley was in Kelana Jaya and it was also a renovated unit. For this unit, I did not do any further renovations because the kitchen cabinets were fully done up to the ceiling, the master-bedroom already have built-in cabinets. I have saved easily RM50,000 from all the renovations done to the unit by the earlier owner.
My first property after I moved to the Klang Valley was also a renovated unit
This unit came with 6 air-conditioner, a twin-door fridge, lots of built-in cabinets in the whole unit; living room and all the other rooms. Kitchen cabinets were from IKEA. I have saved easily RM100,000. Not everyone will like the renovations done by the earlier owner. Thus, I think it really depends on whether we could accept or we would still have to spend money to re-renovate the unit.
Now let’s talk about the 3 advantages.
#1 Discounted price versus total renovated costs
If the property’s market price is RM500,000 and the total renovation is RM100,000 what is the price which we could buy the property? It’s definitely lower than RM600,000 because no buyer would pay for the renovations which was not his / her idea in the first place. So, instead of RM600,000 the selling price may just be RM550,000 and the buyer gets to save a lot of money!
By the way, no buyer is willing to pay for the renovation costs yeah. Thus renovated unit in the secondary market is considered value-for-money units.
#2 Savings in many necessary renovations
Many times, bathroom renovation is necessary versus the typical one given by the developer. This is easily RM6,000 – RM10,000 depending on the size and quality of the renovations. Meanwhile, a kitchen cabinet is also definitely needed and with just a length of 10 feet alone would have been a few thousands too. Many times, these renovated kitchen cabinets would have electrical cooker and hob built into them and these are again, thousands of ringgit depending on the brand.
As usual, curtain railings done meant a savings of a few hundred ringgit and we just need to get the measurement to do new curtains. I could go on but I think you get the idea. All these necessary renovations meant that I could now focus my funds on other things such as a higher qualify sofa, a better bedframe and mattress, a twin-door fridge, branded air-conditioners etc.
Else, all these would have been extra costs for me, not to mention I needed to buy something cheaper since my funds would have been stretched thin because I had to also allocate it for renovations too.
#3 We Save Time and Effort
A friend just said that all the renovation timelines given by the contractor is never accurate. It’s usually off by a couple of weeks. (I think it also depends very much on whether the owner decides to change this and that half way too…) Anyway, typical renovations may take 1 – 2 months. Very extensive ones will take longer yeah. Thus, if we buy renovated units, we have saved a lot of time.
However, it’s not just the duration of the renovation which is long. It will also mean we needed to occasionally drive over and check the work progress and this also takes away our precious time as well. Might as well use those extra time for a dinner with family instead? Or to bring the kids to the playground instead? Lots of things to do versus just driving over and checking progress…
Not everything is awesome with buying a renovated unit yeah
You may not like the renovations (the colour may be a colour you hate). The owner may have holding power and may refuse to sell it at market price as the market price is for bare units. Most owners would want a little premium if their unit is a renovated one. They would like to lose less money since they have spent so much for renovations.
What if you really and totally dislike the renovations? Move on to the next unit lah. Surely it’s better to buy an empty unit then. If you want to renovate the unit to your highest satisfaction, its best to get an empty unit and start everything from scratch too.
Depending on how you do it, it’s really possible to reduce the overall expenses to a minimum. Time and effort must still be spent though unless we have a contractor who knows our wants and needs very well. Happy buying a renovated unit or if you are getting an empty unit, then happy renovating.
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