5 Questions to Ask Yourself Before Buying a Fixer-Upper
Residential
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Residential
Fixer-upper homes are trending in New Zealand. They can be purchased at a lower price than a move-in-ready home and upgraded to meet safety standards and personal preferences. To consider this route, you should be willing to tackle the renovations and have the fiscal ability to do so. Below are five crucial questions to answer before finding your new fixer-upper home in New Zealand.
Your new home should be affordable in the short- and long-term, so it’s essential to understand the project’s budget from start to finish clearly. Calculate the home's purchasing price plus all renovation costs, and factor in contingencies and hidden expenses. Here are some cost considerations specific to New Zealand:
● Housing boom: From 2011 to 2021, house prices soared by 155% until they began to fall in 2022. They were generally steady in 2024.
● Elevated interest rates: Despite the lowered house prices, interest rates remain high. Many homeowners are taking out mortgage loans.
● Increasing premiums: Rates have risen due to natural disasters, notably flooding and earthquakes, resulting from climate change. The average home insurance cost in New Zealand differs by region, but it averaged $237 per month in early 2025.
Consider what level of work must be completed to meet your renovation upgrades. Structural repairs fix anything involving the integrity and safety of the house. These necessary upgrades often involve load-bearing elements like the foundation and walls. New Zealand homes may need upgrades for their insulation and weather-tightness. Always hire professionals to receive the most accurate inspections.
Cosmetic repairs improve the appearance of the house, potentially raising market value. They include painting walls, replacing fixtures, adding patios and other aesthetic changes or minor repairs.
A popular upgrade is the addition of smart home technology, which can add a layer of convenience, security and eco-friendliness to the home. Fixer-upper houses tend to be older and likely won’t have this technology. Though not as necessary as updating the insulation and foundation of a fixer-upper, you should consider investing in smart home tech. Consider the following options to include in your renovation:
● Smart thermostats: These thermostats allow you to control your heating and cooling right from your phone. They even offer energy-saving features to save you money and make your home more energy efficient.
● Smart garage door openers: With these systems, you can open and close your garage door from your phone. They even provide additional safety with real-time security alerts to notify you of any suspicious activity while you’re not home.
● Smart outdoor security cameras: Connected to your phone, these systems will provide you with high-resolution and night vision videos to keep an eye out for any activity on your property.
Home renovations don’t happen overnight, so you must have realistic expectations about the duration of your project. There may be a substantial amount of time between when you buy your fixer-upper house and when you can officially move in, so here are some things to consider:
● How soon you plan to move in: You may want to be settled before starting a new job in the area or before the following school year begins. Consider how much work needs to be done and how long it could take.
● Where you will live in the meantime: Paying rent at your current residence on top of your new house payment can drain your wallet if it’s not accounted for in your budget.
● Where you will store your belongings: After the structural and cosmetic upgrades are complete, you can add your furniture and other belongings to the fixer-upper. Until then, they must reside in your temporary residence or a storage unit.
You should also consider whether now is the right time to buy a fixer-upper. Homeowners with small children or a child on the way may not be in a good position to do so, as construction zones can be hazardous.
Even experienced DIYers should avoid particular home renovations, such as electrical work and wall demolitions. Choosing qualified builders, architects, and tradespeople is crucial for safely and correctly completing your fixer-upper home renovations. Professional contractors with local experience will better understand regional costs and regulations. When researching contractors, check out their past projects and contact their previous clients. You can also seek out contractor recommendations from neighbors.
By buying a fixer-upper home and giving it structural and cosmetic upgrades, it is possible to increase the home’s resale value. The location, size, and condition all factor into this value. However, you should avoid spending more money on purchasing and renovating a property than it will ultimately be worth. There are financial and market risks associated with overcapitalizing:
● Not all renovations will add substantial value.
● Customized features may appeal to you, but not to future buyers.
● The house may become overpriced in its location.
● Hidden problems can inflate your budget.
● DIY solutions may require more extensive maintenance later on.
Focus on renovations that increase your return on investment and monitor market trends. You can start with an online valuation tool to understand a property’s estimated value. A real estate agent or appraiser can provide the most accurate estimate, based on a comparative market analysis. They can help you understand the local market for renovated homes.
Tackling a fixer-upper property can be challenging and rewarding. Before beginning your home renovations, you need to budget for time and money, hire qualified contractors and understand your return on investment. Establishing a detailed and realistic renovation plan is the first step in finding your new home.
About the Author: Evelyn Long is a trusted voice in real estate dedicated to helping millennial and Gen Z buyers make their homeownership dreams a reality. Her insights appear in top publications like the National Association of Realtors and Realty Executives, where she breaks down market updates and practical steps for young buyers. As editor in chief of Renovated Magazine, Evelyn is passionate about empowering the next generation to confidently enter the real estate market
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