Fixer-uppers need more work than most properties. While they’re usually pretty liveable, the idea is that you buy it and renovate it – all at once or gradually over time.
Either way, fixer-uppers are usually priced lower compared to similar properties in the area. Here’s why buying a fixer-upper could be a smart move in 2025.
What’s Good About Buying a Fixer-Upper?
Buying a fixer-upper property (i.e., a property that needs work) has its benefits, including lower costs and vast customisation potential, which we’ll explain more about below.
1. Lower purchase price
Fixer-upper homes are renowned for their lower-than-average purchase prices. Our estimates put fixer-uppers at 10-12% lower than a newly renovated property of the same build.
The most potential is often seen in small to medium-sized homes with one to four bedrooms. This means you could buy a bigger or better home for a lower price and deposit – leaving you more money to spend on renovations.
2. Reduced mortgage payments
A fixer-upper gets you more for your money. When the purchase price is cheaper than a modern home of the same build, you can enjoy lower monthly mortgage payments.
With mortgage interest rates in high positions at the end of 2024 and the start of 2025, homebuyers are already paying more than they were several years ago.
By investing in a property that’s worth less, but has the potential to be worth more, you can save on monthly payments without sacrificing what you want from a home.
Despite needing to invest more to get the property how you want it, it can still save you more long-term (provided you crunch the numbers right).
Plus, you don’t have to renovate immediately. Provided the property is habitable, you can reap the benefits of lower monthly payments while still having a larger home.
3. Fast means to build equity
Buying a fixer-upper home and renovating it is a fast way to build equity in your home.
Depending on the changes needed, you can quickly increase the value of a property. Our estimates show that 10% to 30% can be added to a fixer-upper through high-quality renovations.
With equity in the property, you can sell it to make a profit (known as property flipping), or you can remortgage the home to buy another or add an extension. Or you can simply enjoy knowing your home is worth more than what you bought it for.
4. Vast customisation potential
Another benefit to buying a fixer-upper is the vast potential it offers. Buying a renovated home limits you in many ways.
For example, you may not like the blue kitchen cabinets and marble worktop in a home, but how can you justify ripping it out when it’s only a year old?
Buying a fixer-upper removes all these concerns. Even with a small renovation budget, you can start from scratch – customising as many details as you like, from the floor and wall colours to the layout of the kitchen.
Ready to Sell?
Buying a fixer-upper property could be a fantastic decision in 2025. While it’s generally seen as a good move for first-time buyers, even people moving to a bigger property or downsizing are seeing the benefit of buying a renovation property.
With mortgage rates relatively high in 2025 and fixer-uppers priced lower than neighbouring properties, it can save and even make you money over time.
However, throw caution to the wind. Not every fixer-upper home will be cheaper than its counterparts and renovation work can be costly. Make sure you research house prices in the area and plan your budgets carefully to see what you can afford.
Getting ready to sell? See how much your home is worth today with an instant online valuation or book a valuation with an expert estate agent in your area.