Is It True That Resale Properties Always Cost More To Renovate?

Home renovation is not to be undertaken lightly.

When comparing new launches with resales, you've likely heard the saying, "resale properties require more renovation". It is thought that, since you need to hack up the previous work, it adds time and money.. Since the saying is so common, some buyers use it to motivate them to always stick with new launches.

Renovation costs vary from unit to unit, and no study has proven that resale properties will be more expensive to renovate. Moreover, it is impossible to predict the final cost of the renovations. 

Resale properties often have higher renovation quotes since they can end up being more expensive.

Important Cost Factors To Consider Are:

1. The Hacking Of Previous Works

2. Size Of Unit

3. The Current State Of Plumbing And Electrical Work

4. Appliances

1. The Hacking Of Previous Works.

You may find that hacking out the previous bathroom and starting again is the only option.

In many cases, you can mitigate the costs of these renovations by choosing to live with what is already there. It is one of the biggest wastes to hack up rooms that had been renovated just a few years before the unit was purchased. 

Consider resale units with an interior design you like. Adding what's missing in this way ensures the renovation costs are comparable to buying a new unit. You could use an overlay instead of hacking away and replacing an old layer of material.

Having this done prevents the need to re-waterproof surfaces in areas like balconies, kitchens, and bathrooms (you'll need a contractor to figure out the cost since it varies by unit).

2. Size of Unit.

It stands to reason, the larger the unit, the most it will cost to renovate.

It is important to keep in mind that older resale units are typically larger than newer ones. In the 1980s, the average 4-room flat was about 1,130 square feet.

Currently, the average 4-room apartment is about 969 square feet. Renovation costs are more closely correlated with the size of the unit than with its age. Buying a new condo unit isn't just about the difference in size - and the renovation costs associated with cutting up and replacing floors, walls, repainting, etc. over a greater area won't be comparable between a new and an older condo.

When you're buying an older resale unit, keep in mind that the space may be bigger - but that size will work against you on the renovation front. Before you decide to purchase a giant unit from the 1980s, remember that the maximum renovation loan is only $30,000.

3. The Current State Of Plumbing And Electrical Work.

If the plumbing is in good condition, this can save you money.

Several hundred dollars distinguish a new unit from a resale unit without extensive work on plumbing (and this assumes the new unit comes as is with basic fixtures).

There might not be a difference in cost between new and resale renovations if there is no electrical work required, and all light fixtures are in good working condition.

Make sure the property is in great shape before buying it to avoid high resale renovation costs. Make sure the seller fixes any plumbing or electrical issues before you buy the unit (or offer a lower price to compensate). 

4. Appliances

Relocating or replacing aircon will drive up costs.

Relocating the air conditioner is one thing you want to avoid. The wiring and piping need to be rerun; this can cost over $2,000 in some cases (at which point a new system may be more worthwhile).

Though refrigerators are usually replaced anyway, you might check to make sure the resale unit includes a functioning washing machine and dryer.

If all of these things are in good working order, you may not have to spend as much on a resale renovation after all. 

In Summary.

The fact that resale properties always come with a higher renovation cost is not true. Several of the cost differences we've outlined can be avoided. Several of the cost differences we've outlined can be avoided.