As we traverse the countryside, especially here in the West of Ireland, we are constantly seeing examples of once loved homes, lying derelict and decrepit. Symbols of people who have gone, of times that have passed, of villages and town lands that once were and no longer are.
But these homes can be filled with fresh blood and new life and that is the dilemma that is facing many buyers in these times of limited housing stock.
The challenge of navigating the current property market, especially in west of Ireland's commuter towns, is something many first-time buyers are facing. With limited options and high demand, it is no wonder that many are struggling to find homes that fit within their budget. You are not alone in having to make a tough decision: should you pursue a one- or two-bedroom apartment or should you take the plunge into purchasing an older home that requires significant renovation?
Both options have their pros and cons, and there are several factors to consider before making a decision. Here’s a breakdown to help you navigate this important choice, along with some advice on renovating older properties.
The Apartment Option: Pros and Cons
When considering buying an apartment, the most obvious advantages are typically lower purchase prices and less maintenance. Apartments tend to be smaller, which may fit your needs now, and many of the ongoing maintenance tasks are handled by the management company. This can include rubbish collection, exterior maintenance, and insurance, all of which are often covered by your annual service charge. Additionally, apartments in commuter towns can offer good access to public transport and amenities, which is a major plus for people working in the cities but looking for more affordable options.
However, there are also some key downsides to keep in mind. Apartments often do not have a private garden or outdoor space, which may be important for you down the line. Furthermore, depending on the building’s management, the overall condition of the apartment could be compromised, particularly if the management company is not responsive to repair needs. And, while the initial cost might seem more affordable, it’s worth remembering that apartments can also come with high service charges, and you’ll likely face restrictions on things like renovations or even owning pets.
Renovating an Older Home: Opportunities and Risks
On the other hand, purchasing an older home that requires renovation could be an appealing option if you are willing to take on a project. Buying a property that needs work might mean getting a house at a lower price than you would for a newer one.
In many cases, these homes can be found at a 10-20% discount compared to their newly built counterparts, making them more affordable in the short term. Additionally, if you're looking for more space—perhaps a garden or multiple bedrooms—an older home might offer more than an apartment can.
However, buying a fixer-upper comes with its risks. The work needed to renovate an old house can be extensive, expensive, and time-consuming. From structural repairs to modernising plumbing and electrical systems, renovations can easily go over budget if not carefully planned. Furthermore, with the current shortage of skilled tradespeople and rising material costs, you may face delays and higher-than-expected renovation expenses.
Grants and Schemes for Home Renovations
If you are leaning toward purchasing an older property, there are several schemes and grants available that could help reduce the financial burden of renovating. There are currently around 18 different housing grants aimed at owners of older homes, ranging from solar panel grants to assistance for replacing lead pipes. These grants can help with specific renovation tasks and could make a significant difference to your budget.
One notable programme is the Local Authority Purchase and Renovation Scheme. This scheme allows buyers to get a fixed-rate mortgage to purchase the property, as well as a variable-rate bridging loan to help fund the renovation. For those looking to restore vacant or derelict homes, this scheme could be a great opportunity, but it's essential to meet specific criteria to qualify.
It is also worth mentioning that some grants offer tax credits for renovations or provide low-interest loans for refurbishing properties. The full list of available grants and their criteria can be found on the Citizens Information website, which is an excellent resource for understanding what you may be eligible for.
Ultimately, the decision between buying an apartment or an older home comes down to what fits your long-term goals and what you’re prepared to take on. Apartments are generally easier to manage, with fewer surprises and ongoing maintenance tasks, but they also offer less space and freedom when compared to a house. An older home, on the other hand, may allow you more freedom to personalise and expand, but it comes with a significant amount of work and financial risk.
If you are willing to commit time, effort, and money into renovating a house, and if you have the resources or family support to take on the challenge, this could be a rewarding option.
Just make sure to have a clear understanding of your budget, both for the purchase and for the renovation. A solid renovation plan will ensure that you don’t find yourself in a situation where you need to back out of an agreement due to unforeseen expenses.
Whichever route you choose, make sure to do thorough research, understand all available grants, and work with professionals to help guide you through the process. With careful planning and patience, you may be well on your way to owning your first home.
