Once upon a time a \u201cproject\u201d was an affordable route to home ownership. But with eye-watering renovation costs, unpredictable timelines and no first-time buyer grants, is buying a fixer-upper now just bad maths?<\/p>\n
\u201cI would say they have got very expensive,\u201d says Dublin-based quantity surveyor, Shay Lally. <\/p>\n
He has assessed more than 1,000 residential properties in need of renovation in his career, and renovated more than 100. From demolition to rewiring, insulation to plumbing, his Houses to Restore Instagram account tracks real-time renovation costs.<\/p>\n
\u201cFixer-uppers have gone beyond the reach of first-time buyers,\u201d 75 per cent of respondents to a recent poll he conducted of his 70,000 followers for this article said. <\/p>\n
Even with new, more accessible insulation, door and window grants for second-hand homes, and up to \u20ac70,000 in grants for vacant and derelict properties, a fixer-upper can quickly turn into a money trap. <\/p>\n
What lies beneath<\/p>\n
\u201cBuy the worst house on the best street\u201d, the advice goes but, unless you are willing to spend money pre-purchase on a comprehensive assessment, the \u201cworst house\u201d can end up being your worst decision. <\/p>\n
\u201cThe things buyers don\u2019t see are asbestos removal, clay drains that need to be replaced, dry rot or woodworm. They don\u2019t even think about having to spend on those things,\u201d says Lally.<\/p>\n
The survey a bank generally requires to approve your mortgage is unlikely to fully identify these things. \u201cThat\u2019s really only a surface-level check, or visual inspection,\u201d he says.<\/p>\n
Woodworm in the attic and dry rot in the floor joists are two hidden costs Lally uncovered in a recently purchased house. Findings like these can trigger a cascade of spending a buyer never envisaged.<\/p>\n
\u201cReplacing some joists could cost \u20ac1,500, but it could be so bad that the best thing to do is to remove all the joists and timber boards and put in a new concrete slab \u2013 and then just commit to underfloor heating,\u201d says Lally.<\/p>\n
Depending on the size of the house, that could amount to \u20ac15,000 plus, he says. <\/p>\n
Knocking together a dark and pokey kitchen, utility and conservatory at the back, and extending out for more space is a common playbook. But knocking out the walls, removing rubble and adding steel beams for load bearing could easily amount to \u20ac15,000 as well, says Lally. <\/p>\n
That\u2019s before roofing the extension, adding windows or wiring and plumbing it, he says. You\u2019ll need to hire a structural engineer to certify compliance too. That alone can cost upwards of \u20ac1,500, says Lally. <\/p>\n
Costs can mount quickly. His advice is to engage a quantity surveyor with residential experience before ever signing contracts on a do-er upper. The cost can range from \u20ac750 to \u20ac1,500.<\/p>\n
\u201cYou might realise \u2018we can do A and B, but due to our budget, there are some things we can\u2019t do, or we\u2019ll have to do them in phases\u2019,\u201d he says. \u201cOr that conversation could make you realise you can\u2019t afford to renovate the house,\u201d says Lally.<\/p>\n
Borrowing to renovate<\/p>\n
So how do you fund the purchase and renovation of a property?<\/p>\n
Some borrow renovation funds as part of their initial mortgage drawdown, says Martina Hennessy, chief executive of Doddl.ie. Others will purchase the property first, live in it, only going back to the bank when they can borrow against any increased value of their home. <\/p>\n
Where the cost of renovation works are included as part of the mortgage, buyers can borrow up to 90 per cent of the post-renovation value, subject to valuation, says Hennessy.<\/p>\n
\u201cTo do this, buyers will need a detailed breakdown of renovation costs, usually prepared by a contractor, and an estimated post-works valuation from one of the bank\u2019s approval valuers,\u201d she says.<\/p>\n
Mortgage funds are then released in stages: the purchase funds first, followed by staged payments as the work progresses, says Hennessy.<\/p>\n
\u201cTo draw down staged payments, buyers must provide invoices for non-structural works and certificates from a surveyor, engineer or architect for structural works,\u201d she says.<\/p>\n
Some lenders require a 10 per cent contingency fund for renovation costs. This is in addition to a 10 per cent deposit, she says. <\/p>\n
She gives the example of a \u20ac400,000 house purchase requiring \u20ac100,000 in works. A buyer would need a \u20ac50,000 deposit, plus a \u20ac10,000 contingency fund before a bank will deal with them, she says. <\/p>\n
\u201cThis additional cash requirement can be a major barrier for first-time buyers,\u201d says Hennessy.<\/p>\n
Borrowing for a turnkey property or a new build is more straightforward. \u201cFunds are released in one payment rather than in stages, making the process far easier from a cash flow and stress perspective,\u201d she says. <\/p>\n
Money released in stages can complicate a renovation, says Lally. <\/p>\n
\u201cYou could be waiting for the drawdown. If you have arranged with your contractor to pay them every few weeks and that money from the bank isn\u2019t coming quickly enough, a contractor might pull off site if you can\u2019t pay them.\u201d<\/p>\n
A shortage of construction workers and trades can also add to timelines as well as rent and storage costs. <\/p>\n
\u201cThe availability of people to do the work is the thing that terrifies people about fixer-uppers,\u201d says Lally. \u201cThe other thing is not knowing the bottom line, the definite amount they are going to spend to renovate. Some just want to know how much it will cost them.\u201d <\/p>\n
Mortgage rate penalty<\/p>\n
Buyers of fixer-uppers that have a low building energy rating (BER) typically also find themselves locked out of cheaper, green mortgage rates. <\/p>\n
Take the average mortgage drawdown which at the end of 2025 was \u20ac352,111, says Hennessy. <\/p>\n
With a 10 per cent deposit, a mortgage term of 30 years and a three-year fixed rate of 3.2 per cent, someone borrowing for an A-rated home would have a monthly mortgage repayment of \u20ac1,485 a month.<\/p>\n
Someone borrowing for a home of the same value that is C-rated or lower would be charged 3.7 per cent for a three-year fix, with repayments of \u20ac1,621 a month.<\/p>\n
\u201cThat\u2019s an extra \u20ac136 a month, or almost \u20ac4,900 over the three years, before renovation costs are factored in,\u201d says Hennessy.<\/p>\n
Older houses \u2013 the typical target for doer-uppers \u2013 have lower energy ratings. Just 37 per cent of dwellings built between 2010 and 2014, and 5 per cent of the dwellings built between 2005 and 2009 received an A rating, for example. And the figures get even worse the farther back you go.<\/p>\n
By contrast, A ratings were given to between 94 and 99 per cent of those built between 2015 and 2025. <\/p>\n
Of course, you can always switch to a better green rate once the renovation is completed. <\/p>\n
Home insurance can also be more expensive for older properties, she says. <\/p>\n
Missing out on grants<\/p>\n
There is a shortage of houses for sale currently and far more of what is available is second-hand or in need of work. Yet grants for first-time buyers are limited to new-builds only. <\/p>\n
The Help to Buy scheme offers a tax refund of up to \u20ac30,000. The First Home Scheme, a shared equity arrangement, covers up to 30 per cent of the property\u2019s purchase price. <\/p>\n
First-time buyers of new homes can even combine the schemes. Buyers of do-er uppers however are out of luck. Opt for a more affordable do-er upper in Dublin or Wicklow costing \u20ac400,000, for example, and you are immediately losing out on \u20ac30,000.<\/p>\n
\u201cAll the State supports for first-time buyers are centred on new-build properties, despite the fact the majority of homes sold in Ireland are second-hand,\u201d says Hennessy.<\/p>\n
\u201cThis is a major frustration for first-time buyers who struggle with a limited supply of new-build homes and affordability,\u201d she says. \u201cFor many buyers, a second-hand home is the only realistic option, yet it comes with fewer supports and higher ongoing costs.\u201d<\/p>\n
There is a \u20ac50,000 vacant property grant, topped up to \u20ac70,000 if it is derelict as well but this is open to all buyers, so there is no unique advantage for first-timers. <\/p>\n
These grants are only paid on completion of the work too, which can cause serious cash flow issues, making them unworkable for many first-time buyers, says Shay Lally. <\/p>\n
And they can also drive up the price of do-er upper, leading some renovators into trouble.<\/p>\n
\u201cSome buyers can get into a bidding war and overspend thinking, \u2018I\u2019ll get \u20ac50,000 back on the vacant homes grant, or \u20ac70,000 if it\u2019s a derelict home\u2019, but they are fudging the numbers,\u201d he says.<\/p>\n
Some homes seem to factor the grants into the selling price, meaning the seller is pocketing the notional \u201cgrant\u201d, not the person stuck with the renovation bill. <\/p>\n
Such is the shortage of homes for sale in general that Lally is seeing very little price differentiation between neighbouring properties where one is liveable and another requires renovation. <\/p>\n
\u201cYou can see the cost of buying a fixer-upper is pretty much in line with buying one that you can move into, and that\u2019s a challenge,\u201d says Lally. \u201cDo-er uppers are definitely overvalued at the moment.\u201d<\/p>\n
Advantages<\/p>\n
Buying a home in need of work does has some advantages, of course. They are generally better located, with better proximity to work, schools and public transport, reducing commute times, travel costs and emissions. <\/p>\n
There is often greater potential to add value to a do-er upper too. Unlike a new-build where there can be less room to improve, an older property can have a bigger plot size with more scope to put your stamp on things. <\/p>\n
Older, more established neighbourhoods can mean a greater mix of people at different stages of life, and less mystery about how the area might develop over time. <\/p>\n
Second-hand homes that are already renovated and in walk-in condition are in extremely high demand, observes Hennessy. <\/p>\n
\u201cThere is a definite premium being paid for these. Buyers are wary of current construction and renovation costs and fear that works could quickly spiral beyond what they can afford,\u201d she says.<\/p>\n
Already stretched to save for a 10 per cent deposit, many first-time buyers simply don\u2019t feel they have the financial or emotional capacity to take on a renovation project, says Hennessy.<\/p>\n
Barriers such as cost, labour, a lack of grants, less preferential mortgage rates and the difficulty of synchronising funds and works are further squeezing first-time buyers\u2019 options. <\/p>\n
Only those with larger deposits, often helped by family gifts, are open to do-er uppers, says Hennessy, as are those with family connections in the trades.<\/p>\n","protected":false},"excerpt":{"rendered":"Once upon a time a \u201cproject\u201d was an affordable route to home ownership. But with eye-watering renovation costs,…\n","protected":false},"author":2,"featured_media":304230,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[72,61,60,13781,143598],"class_list":{"0":"post-304229","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-business","9":"tag-ie","10":"tag-ireland","11":"tag-renovation","12":"tag-tradesmen"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/304229","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=304229"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/304229\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/304230"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=304229"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=304229"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=304229"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}