Engel & Völkers Licence Partner Malta Regional Market Center > Blog > Buying a house in need of renovation

Buying a house in need of renovation

People who prefer sober design and modern new buildings do not necessarily appreciate the charm of an older house. Aficionados of yesteryear, however, for whom a building is more than just a place to live, are often fascinated by the soul of such a house. However, despite all the fascination for a building steeped in history and the prospect of being able to live there, the following points should be considered beforehand if considering a project development:

 Mriehel
- A house in need of renovation is a challenge and a unique opportunity to create your own individual living space. So be creative!

Listen to what the experts have to say

Before buying the property, have a construction expert check the condition of the building. He will be able to detect defects that someone without specialist knowhow will not be able to identify at first glance. He will also be able to assess how much it would cost to remedy the defects. This is important because the costs of renovation measures that cannot be postponed may have to be added to the costs of buying the house. If the purchase price of the house plus the total costs for renovation are lower than the purchase price of a house not requiring renovation, this house is indeed recommendable from a financial point of view. Both for private home buyers and for those who want to sell the property after renovation, an accurate assessment of the building condition and the costs involved is therefore an important criterion.

Have the purchase price assessed by a real estate agent

The value of a house is not only determined by its condition and age. The immediate surroundings can also increase or decrease its value. A real estate agent can also provide information on property prices in the area. A real estate expert knows both the local rent index and what a realistic purchase price would be. An extract from the land register, which provides information on any building encumbrances on the property, can also be consulted. Likewise, you will be able to find information on the age, size and condition of the house to be renovated. These can be decisive, because old lead pipes and asbestos cladding were commonly used in the past, but today they urgently need to be replaced, which can cause immense costs.

The advantages of buying a house in need of renovation:

1. Properties that are modernised may be subsidised by the state

Most properties increase in value over the years, especially if a house has undergone extensive renovation. In addition, owners receive state support for restoring older houses within a redevelopment area. Furthermore, the rental cap does not apply to properties that are let directly after comprehensive modernisation measures. So, it is definitely worthwhile not only to restore an older building but also to carry out ecologically sensible modernisation measures.

Especially in the case of real estate in redevelopment areas, numerous tax breaks with depreciation options of up to 70 percent are an additional attraction.

2. Individual preferences are met

A garden, a barn, the layout of the rooms or old wooden flooring - houses in need of renovation usually have something special to offer due to their age that appeals to the potential buyer personally. Here you can work to your heart's content and configure the house in line with your personal preferences.

3. Save money by doing it yourself

Especially if you do it yourself, you can again save a lot of money. But even if many things have to be done by a specialist, the timing and extent of the renovation and modification measures can be determined by the landlord as best suits him.

Anyone who has always wanted to live in his own house and has finally found his dream home in the form of a house in need of renovation will gladly accept some compromises and focus on the advantages and pleasant aspects of the house. After all, they outweigh by far.

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Engel & Völkers
Licence Partner Malta Regional Market Center
  • Triq in-Negozju
    BKR 3000 Mriehel
    Malta
  • Fax: +356 2347 0199

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