Buying an unrenovated property and transforming it through renovation is one of the most effective ways South Africans build wealth, enter desirable areas, or create a customised home at a lower upfront cost. However, it comes with risks, regulations, and financial considerations that buyers must understand before committing.
What Is an Unrenovated Property?
An unrenovated property is a home that has:
- Outdated finishes (old kitchens, bathrooms, flooring)
- Structural wear or cosmetic neglect
- Old electrical or plumbing systems
- Minimal upgrades since initial construction
These properties are often sold:
- By estates after a death
- By long-term owners downsizing
- As repossessed or distressed sales
- Below market value due to condition
Why Buy an Unrenovated Property in South Africa?
1. Lower Purchase Price
Unrenovated homes typically sell 10–40% below renovated market value, especially in older suburbs.
2. Renovation Value (Forced Appreciation)
You can increase the property’s value through upgrades rather than relying solely on market growth, a key advantage in slower markets.
3. Better Locations
Older, unrenovated homes are often found in established suburbs close to:
- CBDs
- Schools
- Transport routes
- Business hubs
4. Customisation
You renovate to your taste, lifestyle, or tenant market instead of paying for someone else’s design choices.
Risks and Challenges to Consider
1. Hidden Defects
Common in older South African homes:
- Rising damp
- Cracked foundations
- Faulty electrical wiring (non-compliant COCs)
- Old galvanised plumbing
- Asbestos roofing or ceilings
Tip: Always budget for surprises.
2. Financing Limitations
Banks may:
- Refuse full bonds on severely distressed properties
- Require higher deposits
- Value the home “as is,” limiting loan amounts
Some buyers use:
- Cash purchases
- Building loans
- Personal loans for renovations
3. Renovation Cost Overruns
Labour costs, material price fluctuations, and contractor delays can quickly inflate budgets.
4. Municipal Compliance
Failure to obtain approvals can lead to:
- Fines
- Forced demolition
- Delays in resale
The Renovation Process in South Africa (Step-by-Step)
Step 1: Due Diligence Before Purchase
Before signing an Offer to Purchase (OTP):
- Get a professional inspection
- Check zoning and title deed restrictions
- Review building plans with the municipality
- Estimate renovation costs realistically
- Confirm heritage restrictions (especially in older areas)
Pro tip: Include a renovation feasibility clause in your OTP if possible.
Step 2: Set a Realistic Renovation Budget
Step 3: Decide the Type of Renovation
Cosmetic Renovation (Low Risk)
- Painting
- Flooring
- Kitchen upgrades
- Bathroom refresh
- Lighting and fittings
Best for beginners
2–6 weeks
Structural Renovation (Higher Risk)
- Removing walls
- Adding rooms
- Extensions
- Roof replacement
- Plumbing or electrical rewiring
Requires municipal approval
2–6 months
Step 4: Get Municipal Approval (If Required)
You need approval for:
- Structural changes
- Additions or extensions
- Boundary changes
- Additional dwellings (granny flats)
Approval process:
- Architect or draughtsperson
- Submission to municipality
- Approval timeline: 1–6 months, depending on municipality
Step 5: Hire the Right Professionals
Key professionals include:
- Architect or draughtsperson
- Structural engineer (if required)
- Quantity surveyor (for large projects)
- Licensed electrician & plumber
- NHBRC-registered builders (if applicable)
Always:
- Check references
- Get written contracts
- Avoid large upfront payments
Step 6: Renovation Execution
Best practice:
- Work in phases
- Inspect weekly
- Keep a paper trail
- Pay per milestone completed
Keep contingency funds untouched unless needed
Step 7: Certificates of Compliance (COCs)
Before resale or occupation:
- Electrical COC (mandatory)
- Plumbing COC (often required)
- Gas COC (if applicable)
Without valid COCs, transfers can be delayed or rejected.
Final Thoughts
Buying an unrenovated property in South Africa is a powerful strategy but success depends on planning, budgeting, compliance, and discipline. When done well, it can deliver substantial financial returns or a truly personalised home in a location you otherwise couldn’t afford.