As renovation costs soar, Kiwis looks for properties that are already "up to speed"
Tim Kearins, owner of Century 21 New Zealand, said houses that “need little doing” are more popular now that Kiwis are getting increasingly concerned about taking on extra costs and stress in these times of uncertainty.
Kearins’ comments come as renovation costs soar and as there continue to be delays on project times and building supplies.
“Do-ups will always remain part of the Kiwi landscape, but plenty of buyers now don’t want to go there given the ongoing cost pressures and delays in and around the building sector,” Kearins said. “If a property is up to speed, particularly around the likes of kitchens and bathrooms, it’s a real selling advantage in this environment.”
According to the Century 21 leader, an increasing number of properties were being marketed along the lines of “recently renovated,” “all done for the next owners to enjoy,” and “move in, sit back, and relax.”
“When the market was hot, houses needing plenty of work were getting snapped up regardless,” Kearins said. “Now with the market cooling, buyers are more wary of the added stress a do-up presents. Concerns include not being able to secure the extra finance for renovations, not to mention the real possibility of cost and deadline blow-outs.”
The current situation may prove challenging for those selling do-ups, but it creates opportunities for those still wanting one.
“This is a good time for a cash buyer to snap up a do-up, particularly if they have the required time and money to invest in the property,” Kearins said. “Then when the market inevitably bounces back, they’ll have a gem which will deliver some good capital gain.”
Not only have done-ups become more desirable in this market, a property’s online presentation has also become even more important since COVID-19.
“Kiwis have got more used to letting their fingers do walking, and the standard of online marketing has caught up to enable them to do this more fully,” Kearins said. “Agents too are more used to walking prospective buyers through with the likes of live video. With many Kiwis opting to stay home more, the quality of a vendor’s online presence is now even more important.”
Kearins said virtual tours, floor plans, video, and drone footage have become the norm to increase a property’s exposure.
“If you’ve got a property which is effectively finished, then promote that real advantage and highlight it in your online marketing,” Kearins said. “Plenty of buyers will see your property investments and improvements as one less headache they’ll have going forward.”
