Australians watching new homes take shape on the small screen, are often inspired to buy a ‘renovator’s delight’ reports leading property group.

Leading real estate group – Raine & Horne, reports a surge in buyers seeking homes that are ripe for renovation, often fuelled by the property transformations they see on popular television show The Block.

Angus Raine, Chairman of Raine & Horne Group, says, “It is no coincidence that The Block hits our screens each spring, as this is typically the peak property season across Australia – and the start of the warmer weather, which often see a spike in renovation activity.

“Buyers are often inspired by the building or renovation works seen on The Block and the myriad of shows on cable television such as Grand Designs, and are keen to turn their own hand to property renovations.

“There is no doubt that homes ripe for renovation often sell for less than more contemporary properties, so buyers may be able to score a quality property at a reasonable price and add value through improvements,” said Mr Raine.

Western Sydney – even a partial renovation can add substantial value

Vince Labbozzetta, Director of Raine & Horne Liverpool, said homes ripe for renovation in his area of south-western Sydney attract a mix of first home buyers, developers and occasionally investors.

Unlike The Block participants, Mr Labbozzetta said it is unusual to see property ‘flippers’ – those who buy and sell within a short timeframe – in his neighbourhood.

He added that developers are more interested in large parcels of land ideal for constructing duplexes.   

That said, there is money to be made in renovations in Sydney’s south-west.

According to Mr Labbozzetta, renovated homes can sell for a price premium but even partially renovated homes will almost always attract a higher price.

“A ‘fixer upper’ is normally a home where the kitchen or bathroom needs work done, and not every buyer will go for this,” said Mr Labbozzetta.

“A lot of people want to move straight into a completed property. However, renovators with time up their sleeves can make money on a property – often at least a profit of 10%.”

Raine & Horne Liverpool has listed for sale 94 Strickland Crescent Ashcroft from $930,000. This single-level, 3-bedroom home on a 588 m² block offers a wealth of opportunities.

Mr Labbozzetta said, “The Ashcroft location is exceptional, with close proximity to Liverpool and Fairfield. This is a house with excellent bones to build on, to transform into a well-located, generously proportioned family home.”

Brisbane – a renovator’s delight can be an affordable entry-level option

Further north in Queensland, Des Besanko of Raine & Horne Brisbane Central, explained, “Buying any home in a Brisbane CBD fringe suburb, usually means you need to find a home that’s a bit older – and everyone is looking in these areas right now, firstly because it is generally hard to find vacant land in these areas, and  also because it generally costs less to buy a pre-loved property rather than buy vacant land and then build a new home from scratch.

“Buyers who opt to purchase a vacant lot and build are looking at around $800,000 by the time they build a home – this can be found in the more affordable suburbs in say Springfield through to Ipswich where there is more of an abundance of vacant land.”

“The other option for a relatively affordable entry level home is to buy a ‘renovator’s delight’ and do it up. On a quality renovation, every $1 spent can drive a $2 uptick in the property’s value,” said Mr Besanko.

Raine & Horne Brisbane Central currently has listed for sale 22 Perwell Street, Keperra, QLD. This generously proportioned home has outstanding ‘bones’, and while it is ready to move into straight away, Mr Besanko said, “A new lick of paint inside could add considerable value.” The home is on the market with price expectations of $950,000.

Adelaide market – ‘noticeable’ competition for homes in need of renovation

In Adelaide, Mr James Trimble, Senior Sales Agent and Auctioneer, Raine & Horne Adelaide, said there is “noticeable competition” for fixer uppers. This is especially the case among first home buyers who can complete any works themselves, and this is tending to push prices upwards. 

More broadly, Mr Trimble said key location signs to watch for in a potential fixer upper include local infrastructure growth – such as nearby road and rail links, as well as the gentrification of adjacent suburbs that can spill over into nearby neighbourhoods.

Raine & Horne Adelaide have 20 Stewart Street, Glanville listed for sale by auction. Mr Trimble said the home is on the market for the first time since it was constructed in 1960, and whilst liveable, the home offers plenty of opportunity to personalise, modernise and extend.

“We have seen interest in Glanville go through the roof because of the AUKUS submarine project. Buyers are clamouring to buy a fixer upper in the area as a way of getting into the market before the bottom rungs of the Adelaide property ladder go missing altogether,” said Mr Trimble.   

While the time, effort and cost involved in renovating a home should not be underestimated, buyers need to ensure a renovation will add value.

“Raine & Horne property experts can explain the features most sought-after in any given neighbourhood. This is valuable local knowledge that I encourage renovators to take advantage of,” concluded Mr Raine.