10 Things to Consider Before Buying a Renovation Property
After navigating the process of finding and purchasing our 1950s bungalow for renovation, we've learned countless lessons—some the easy way, others the hard way. Before you take the plunge into a renovation project, here are the ten critical considerations that could save you time, money, and stress.
1. The True Cost Is More Than You Think
When calculating your renovation budget, remember this formula:
Total Investment = Purchase Price + Renovation Costs + Professional Fees + Living Costs + Contingency - GrantsA realistic breakdown for a €500,000 property might look like:
Property purchase: €500,000
Stamp duty (1%): €5,000
Legal fees: €5,000
Renovation costs (200sqm × €2,500-3,000/sqm): €500,000-600,000
Structural engineer: €5,000-10,000
Architect fees (10-15% of build): €50,000-90,000
BER assessment: €500
Rental during construction (€4,000/month × 12 months): €48,000
Contingency (15% of build): €75,000-90,000
Grants: refunds of up to about €25,000 are available for retrofits (unless the property meets other criteria)
Total investment: €1,188,500-1,348,500
That's potentially double your property purchase price! Remember to calculate this full amount for every property you consider.
2. Value Ceiling Matters
Research what similar A-rated properties in your target area actually sell for. If your total investment exceeds this value, you're at risk of losing money.
Only break this value ceiling if:
You can afford the potential financial loss
It's genuinely your "forever home"
You have fallback options (like selling a portion of the site)
We've seen beautiful renovations that cost far more than the property could ever be worth—a labor of love, perhaps, but not a sound investment.
3. Infrastructure Limitations Can Derail Plans
What lies beneath your property can dramatically affect what you can build:
Water and sewage pipes typically have a 3-meter exclusion zone for building
Drainage issues might require expensive solutions
Access for construction equipment needs consideration
Service connections might need upgrading
We nearly purchased a property before discovering a main sewer line running directly through our planned extension area. Always investigate what's invisible before committing.
4. Financing Is Complicated for Renovations
Renovation financing differs significantly from standard mortgages:
Build mortgages release funds in phases, not upfront
Each phase requires architect/engineer approval before releasing the next tranche
You'll need detailed drawings and costings before even applying
Significant professional fees must be paid before receiving your first cent (and often before closing—so you're paying for a house you don't even own yet)
These complexities can add months to your timeline and require substantial cash reserves for upfront professional costs.
5. Planning Permission Takes Time (and is not guaranteed)
The planning process is lengthy and uncertain:
Standard timeline: 12 weeks plus 4 for appeals
Appeals to An Bord Pleanála can add months or years
Planning departments have different interpretations of regulations
Previous precedents in your area may not apply to your case
Any extensions since the 1960s are counted toward your exempted development allowance
Always research the local planning environment, and never assume permission will be granted, even for seemingly minor changes. You can get a free pre-planning meeting with the local council to discuss your plans.
6. Phasing Your Project Can Be Strategic
Breaking your renovation into distinct phases offers numerous advantages:
Move-in date comes much sooner
Allows for higher quality in the initial phase
Spreads financial commitment over time
Reduces planning permission risks
Gives you breathing room to live in the space before finalizing later phases
Our approach:
Phase 1: Renovate existing floor area to A-rated standard with modest expansion
Phase 2: Further extensions requiring separate planning permission
Having our architect design both phases simultaneously ensures cohesive design despite the staggered timeline.
7. Professional Input Is Invaluable
Bring professionals to properties:
Builder to verify renovation feasibility and costs
Structural engineer to identify hidden issues
Planning consultant to assess planning permission likelihood
Architect to scope opportunities for development
This due diligence could save you from potentially disastrous purchases and gave you confidence when you find "the one."
8. Administrative Preparation Prevents Delays
The paperwork involved in a renovation purchase is substantial:
Solicitor needs to be lined up in advance
Mortgage documentation requires extensive preparation
Survey arrangements should be made immediately upon offer acceptance
Planning permission requires multiple document sets
Having your administrative ducks in a row can shave months off your timeline and prevent costly delays.
9. Your Buying Position Matters
In competitive markets, how you present as a buyer significantly impacts your success:
Cash buyers have a substantial advantage
"Subject to sale" offers are often rejected
Being chain-free allows for faster movement
Demonstrating renovation experience adds credibility
Having professionals already engaged signals seriousness
We lost several properties before positioning ourselves as cash buyers by selling our previous home first—a challenging but ultimately successful strategy.
10. Living Arrangements Require Careful Planning
Renovations almost always take longer than expected. Your living arrangements during this period need thorough consideration:
Rental costs can be substantial
Short-term leases and/or unfurnished properties often come at a premium
Living on-site during renovation is rarely practical
Moving multiple times adds significant expense
Storage for your possessions adds another layer of cost
Factor these living costs into your budget from the start—they often add up to more than people expect.
Bonus: Emotional Resilience Is Essential
The renovation property journey is an emotional rollercoaster:
You'll likely lose out on properties before finding "the one"
Budget constraints will force difficult compromises
Unexpected issues will emerge during renovation
Timeline extensions are almost guaranteed
Decision fatigue is real and challenging
Prepare yourself mentally for this journey—it's as much an emotional investment as a financial one.
A renovation property can be incredibly rewarding, transforming a house with untapped potential into your dream home. However, success depends largely on thorough preparation and realistic expectations. By considering these ten factors before purchasing, you'll hopefully be better positioned to navigate the complexities of the process.
What other considerations would you add to this list based on your renovation experiences? I'd love to hear your insights!
