Watch out for the deal-breakers, however. While painting, updating a kitchen or even having a false wall built to create an extra bedroom are all in the do-able bracket for most buyers, serious structural work can be a real no-no.
When did you last hear a buyer say: "Oh, I love that new roof". While a new paint job is obvious to buyers, that new roof isn't. Rarely does reroofing or re-piling pay its way.
Any major structural works should be a deal-breaker for all but the experienced DIYer and builders. Why take this on when you can buy a property that needs cosmetic work only? That well-maintained but dated home which has been in the same family for 40 years might be a better proposition than a rotting one that is $50,000 cheaper.
There are all manner of other deal breakers for experienced renovators. Most renovators say avoid asbestos like the plague.
Another biggie is drainage problems, which can be hard to solve (for example, look for large trees near underground drain pipes). Missing gutters or downpipes can indicate water damage elsewhere in the property. Rot has a way of hiding and can be expensive to repair. Beware of anything saggy.
Cracks in the concrete, the fireplace, the chimney, the paths or anywhere else could indicate sinking foundations and other significant problems. Sloping floors are a related red flag as are uneven doors, gaps between doors and frames or doors and windows that won't open.
If you're looking to turn a profit quickly, then large trees could be a nightmare. They shade the property, can be unsafe, put off buyers, can be costly to remove and sometimes you're not allowed to remove them or get lost in bureaucracy.
Any illegal work should put inexperienced buyers off. Wrangling with the council over unconsented works can be a costly and thankless task. Just because there is a flat attached to the home or the sale particulars refer to "potential home and income" never presume that the conversion is legal.
Deal-breakers can depend on whether you plan to do the work yourself or not. Every renovator needs to know what they're capable of. Some people can install basic kitchens, but others can't. The latter group may be prepared to pay for new benchtops, but can't afford the full cost of a kitchen. "If there is a reason the property is cheaper and you can't fix it yourself then when you come to selling the place your sales price will be affected," says Bruce.
Buyers looking for the proverbial do up, quick flick or similar, may not want to get involved in anything that needs building or resource consent. "This will significantly impact your timeline and cost," says Bruce.
Other deal-breakers for Bruce include the property having limited sun, smelling very damp or being next door to a major intersection or industrial right of way.
Of course everyone is different. A buyer looking at the rental market might see a large or complex garden as a downside, whereas a first home buyer who plans to do up and live in the property might be delighted to buy the property.
For most people any whiff of a leak would be a deal-breaker. But there are some experienced renovators who view the bargain basement prices of leaky homes as an opportunity.
Whether you're a first time buyer or doing it for capital or income, you need to do your numbers.
First time renovators often fail to factor in costs from architect to council costs, and sundries such as rubbish removal.
