The renovation boom of 2020. Is it a better option than a new build property?
- By admin
- December 15, 2020
During this difficult year of 2020, the team here at Verdin Property have noticed one particular request from our clients becoming more and more frequent.
‘Do you have properties that need renovation?’
Of course we do, but that might not be the case for much longer. The simple fact is that properties that require some love and care, not to mention the occasional bulldozer, are being snapped up at a rate of knots.
Another type of property we always get requests for is new builds. Of course we can see the draw of a new build or off plan property. Brand new, never been lived in, shiny and clean… did we miss anything?
But for us there is (almost) always one major flaw. Price.
When you compare the average price per square meter based on location and then compare this average to a new build property, we’d recommend you sit down. The numbers shoot off the scale. Yes we understand the reasons why, and that it doesn’t matter what the numbers are when clients still buy them, HOWEVER, what you don’t see is the return when you come to sell.
That’s not to say we all wouldn’t want one though … check out this beautiful development below!
Now for the important part of this blog. Let’s compare the two options!
As previously mentioned, properties that need renovation are high on our list of requests from clients. So are new build properties.
When you put down all the pros and cons onto a piece of paper and work with the numbers, you’d end up picking a renovation job. Why? Because, ultimately, that’s where the money is. Pick one up (relatively) cheap, fix it up, live in it or sell it on for a profit. Assuming you’ve done everything properly that is….
The key to a profitable renovation project is buying at the right price, don’t forget, in Spain, you have an average 10% costs to purchase and an average 10% costs to sell, so you must factor this into the purchase, renovation costs and the final sale price … and remember – don’t go over budget!
Now, if you pick going purely on photos and lists of information at your fingertips, you’re likely to end up plumping for a new build property.
By the way, check out our selection of new build apartments and villas HERE
Despite what we mentioned earlier, we are certainly not against new builds, some of them offer world class facilities, architecture and high standards of living.
One of the most popular new developments is Higueron West 217 between the popular well known towns of Fuengirola and Benalmadena. Offering stunning apartments, a Michelin Star on-site restaurant, beach club, 5 star hotel, green zones and enormous communal areas, plus a little train to the beach along with many other amenities too numerous to mention, this village-like development, which is currently under construction, is 80% sold out within just two years!
One thing that we must make clear though is that this is not an exact science. Not every renovation project will make you a profit, just like not every new development is too highly priced. As with everything real estate, it comes down to location, location, location.
Don’t forget, Verdin Property are experts on the Costa Del Sol. We know every development, all the best places to live, work and play, plus we always provide a world class service to ALL of our valued clients. After all, you’re how we survive, and that’s unfortunately something certain agencies tend to forget… it’s all about YOU!
So why not come and discover your dream home in the sun today. The Verdin family will guide you every step of the way!
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PPS. Don’t forget to check out our most recent lifestyle and property blogs!