The benefits of buying a property to renovate!
Your dream home doesn’t always have to be a new build or a turnkey property. Despite it being a considerable challenge, an increasing number of young families are choosing to renovate an old property. The reason why is simple: there are plenty of homes for renovation available, and the purchase price is usually lower than you’d pay for a new home or one that’s ready for you to move in. What’s more, renovating offers a number of additional benefits.
A good way to estimate the condition of an old house is its EPC rating. According to a recent survey by property website Immoscoop, 42% of properties posted to their website had an EPC rating of ‘A’ or ‘B’. In other words, these properties were either fully renovated or brand new. The availability of this sort of property was highest in East Flanders (46%) and lowest in Flemish Brabant (35%) and Limburg (36%).
At the other end of the spectrum, we see that 23% of the properties available had an EPC rating of ‘E’ or ‘F’. This type of property was largely for sale in the provinces of Flemish Brabant and Limburg (28%). Properties with an EPC rating of ‘E’ or ‘F’ certainly require some work, but the good news is that the purchase price of these properties is often a lot lower.
Buying a property for renovation has other benefits as well. The price per square metre is lower, which means you can more easily acquire a house or flat with a larger habitable area or in a more desirable neighbourhood. If you buy one of these properties, you don’t have to pay any VAT. You do pay registration duties, but this rate will generally be lower. Once you start making renovations, you only pay 6% VAT on materials and labour (if the house is at least 10 years old). Carrying out energy-efficient renovations also entitles you to a number of different subsidies.
The appeal of a home you’ve renovated yourself is often greater because you’re able make changes to suit your personal taste. What’s more, making the right investments in energy-efficiency (especially for a property with an EPC rating of ‘E’ or ‘F’) can significantly increase the value of your home while saving you energy.
If you’re interested in buying a property to renovate, you should first make a thorough calculation of the possible renovation costs. These shouldn’t be more than what you’d additionally pay for a renovated or new home, nor should they exceed the potential increase in the property’s value and energy savings you’d gain by renovating.
Curious what a renovation would cost?
Just log in to KBC Mobile and use the free additional ‘Calculate your renovation’ service from Setle. It uses reference prices from contractors to let you know how you can aesthetically improve a property and make it more energy-efficient, what it would cost, and how you can make the most of your budget, ensuring you make the right decisions for what you want to spend. The detailed renovation report also serves as valid proof of investment when applying to KBC for renovation financing, so you don't have to submit any quotes.
Looking for a turnkey property or a renovation project?
Be sure to check out www.immoscoop.be. There are even ‘Immoscoop only’ properties that are temporarily exclusive to this real estate website, so you have a unique opportunity to be the first to find your dream home!