The Pros & Cons of Buying a Fixer-Upper in Adelaide

The Truth About ‘Fixer-Uppers’: Are They Really Worth the Hassle?

Buying a fixer-upper sounds like the perfect strategy, doesn’t it?

You snag a bargain property with ‘potential’, roll up your sleeves, knock down a wall or two and after a bit (or a lot!) of hard work, you’ve transformed it into your perfect home or a profitable investment.

At least, that’s the idea.

But is it really as simple—and rewarding—as it looks on the renovation shows?

For buyers in Adelaide, where competition and affordability are constant challenges, fixer-uppers can feel like the answer to breaking into the property market or building solid wealth.

The question is: are they worth the effort?

Let’s cut through the hype and explore the pros, cons and all the things you really need to know to decide if buying a fixer-upper is a smart investment—or a costly misstep.

What, exactly, is a ‘Fixer-Upper’, and why do people love them?

A fixer-upper is basically a property that needs some serious love to unlock its full potential.

Often referred to as a ‘renovator’s delight’, it could have anything from peeling paint and a dated kitchen to a need for major repairs like a roof reno or shoring up structural damage.

Buyers and investors are often drawn to these properties for a few key reasons: the ability to customise them to be whatever they want them to be, and the potential for long-term profit.

But what makes these homes so attractive—and lucrative—is the price tag.

You’re usually looking at something below market value in a desirable location, which is rare in Adelaide’s currently hyper-competitive property market.

“In Adelaide, areas with older homes—particularly in locations with strong growth potential—tend to attract buyers looking for character properties they can restore,” explains Kate Barnett, Director at We Connect Property.

“In prime fixer-upper suburbs like Port Adelaide or Edwardstown, where older homes often have real character, there’s a huge opportunity to transform a tired property into something truly special.”

And she’s right. The appeal is undeniable—especially if you’ve got an eye for what’s possible or a budget that won’t stretch to a move-in-ready home.

But Kate points also out that, “it’s not enough to get swept up in the idea of a renovation. You need to go in with your eyes wide open, a clear plan in mind, realistic expectations and a solid understanding of the risks.”

So let’s break it down.

The Pros of Buying a Fixer-Upper

Let’s start with the good stuff. While they come with challenges, fixer-uppers can be a fantastic opportunity—when approached the right way. Here are the best bits about buying a renovator’s delight.

1. Lower purchase price

The biggest draw to buying a run-down home is often the price. Especially when compared to move-in-ready homes.
So they can be an appealing option for buyers entering the market on a budget.

For investors, the lower cost also frees up additional capital for renovations or other opportunities.

“Getting a fixer-upper at the right price is critical,” Kate says.

“You’re essentially buying potential, so you need to make sure you’re factoring in the cost of turning it into what it could be, not just what it is now.”

“The key is finding the right balance between affordability and potential.”

2. Equity growth opportunity

Arguably the biggest drawcards to buying a fixer-upper is your chance to boost the property’s value through renovations, creating equity.

For example, a well-executed renovation in an up-and-coming suburb could generate substantial returns when time comes to sell—or even if you decide to rent it out.

By simply upgrading things like kitchens or bathrooms, property values—and in turn rents charged—can be increased considerably in a relatively short space of time.

It’s all about knowing what upgrades will give you the best bang for your buck. So success is absolutely achievable if you know where to spend your money.

3. Creative freedom

Finally, buying a fixer-upper means you’re not stuck with someone else’s design choices, and allow you to create something truly unique that suits your own needs, or those of the market you wish to rent or flip it in.

The cons of buying a fixer-upper

Now for the less glamorous side. Fixer-uppers come with their fair share of challenges, and not everyone has the time, energy or budget to tackle them.

For many, the tests and trials of renovating can outweigh the potential rewards.

1. Unexpected renovation costs or blowouts

One of the biggest risks when tackling a fixer-upper is blowing your budget.

“It’s not uncommon for renovations to cost more than expected, especially when hidden issues—like structural damage, asbestos or plumbing problems—crop up,” Kate explains.

These kinds of things can add thousands to your cost, and reinforces why it’s so important to budget conservatively and build in a buffer for surprises when embarking on a fixer-upper project.

“It’s also essential to make sure you get a thorough building inspection done on the property before you sign the contract. It’s the only way to know what you’re really getting into and avoid falling into a trap,” adds Kate.

2. Time, effort and stress

If you’re dreaming of a quick, fun project think again.

Renovating a fixer-upper takes time—typically more than you expect—and often involves months of work, coordinating trades and managing approvals.

For many buyers, particularly first-timers, this can be overwhelming and exhausting.

“Renovating is not for the faint-hearted. You have to be honest with yourself about how much effort you can realistically dedicate to a project,” Kate cautions.

“Even with professional help, managing a renovation is no small task. If you’re not prepared to dedicate the time and energy—or have the budget to hire someone who can—it can quickly turn into a nightmare.”

3. Overcapitalisation risks

One of the biggest mistakes buyers make with fixer-uppers is overcapitalising—spending more on renovations than the property is—or ever will ever be—worth.

This is particularly risky in Adelaide’s market, where some suburbs have very clear price ceilings.

“Before you even pick up a hammer, you need to know the property’s post-renovation value,” Kate advises.

“If your total costs—purchase price plus renovations—exceed that value, you’re at risk of losing money and setting yourself up for disappointment. Not to mention the financial blow.

“It’s all about knowing your numbers.”

How to spot a fixer-upper with good potential

Not every fixer-upper is a smart investment. So, how do you spot a diamond in the rough?

Knowing what to look for can make all the difference between a successful investment and a money pit.

Non-negotiables for a worthy fixer-upper

Solid bones: The foundation, roof and walls—especially weight-bearing ones—should be in good condition. Major structural issues can blow your budget quickly.
Good location: Suburbs with growth potential, good schools or planned infrastructure are ideal. Look for areas that are experiencing strong demand, as these are where property values tend to rise.
Functional layout: A practical floor plan will not only save you the hassle (and cost) of major structural changes, but will also appeal to more buyers.

“Finding a fixer-upper with good bones should be non-negotiable for anyone looking to take on a project home,” Kate says.

“The last thing you want is to blow your budget on structural repairs when that money could be better spent on upgrades that will boost real value.”

Things to watch out for

When it comes to red flags—there are plenty of those too. Here are the most common:

Termite damage, foundational issues or extensive water damage, either recent or historical
Unrealistic asking prices for what’s essentially a money pit. Price should reflect the effort that will be required to bring the home up to a liveable (and saleable) standard.
Heritage restrictions and local council easements and constraints that limit what you can do to the property.

Kate’s advice?

“Always bring in the experts before you decide to buy any property. That’s because a professional building inspection can save you from making a very costly mistake. Even minor-looking issues can hide tens of thousands of dollars in repairs, so don’t rely on a quick walk-through.”

How to avoid overcapitalisation

Finally, it pays to talk about overcapitalisation.

Spending more on a fixer-upper than it’s worth is a common trap, but it’s entirely avoidable if you follow some simple principles:

Set a realistic budget (and stick to it!): Outline your renovation budget before purchasing, and stick to it. Remember to factor in the purchase price, trade costs and a contingency for unexpected expenses.
Focus on high-impact upgrades: Kitchens, bathrooms and outdoor entertaining spaces typically deliver the best returns. Landscaping is also worth looking at in Adelaide, with our mild climate and outdoorsy lifestyle.
Understand the local market: It pays to understand what buyers are looking for in the suburb you’re looking at to avoid overspending on unnecessary upgrades. The last thing you want to do is blow through your budget on updates buyers really don’t care for.

Kate offers a simple rule of thumb.

“Keep renovations to no more than 10–20% of the property’s projected post-renovation value. Anything more, and you risk losing any gains made when time comes to sell.”

Is a fixer-upper right for you?

Now it’s time to face the hard truth: fixer-uppers aren’t for everyone.

While the concept sounds amazing, undertaking such a large project requires resilience, patience and the ability to pivot when things don’t go according to plan.

Put simply, buying a renovator’s delight is about more than just the property—it’s about your readiness to take on the challenge.

Plus, you need to be incredibly realistic about your finances, your time and your goals.

Are you buying to live in the home or to flip it for profit? Are you prepared for the work—or willing to pay someone else to handle it?

“Fixer-uppers are a fantastic opportunity for buyers and investors to unlock hidden value, but are not for the faint-hearted,” Kate notes.

“They can help you break into the market, build equity and are an incredible opportunity to create wealth, but it’s not a decision to take lightly.”

But with the right property, a clear budget and a solid plan can help you turn a fixer-upper into a dream home or profitable investment.

Let’s make it happen

Ready to make your next property move a success?

Let’s connect for a quick chat and we’ll help you create a tailored plan for your new—or next—property.

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DISCLAIMER: All recommendations made by We Connect Property are general in nature and not to be relied upon as legal or financial advice. To ensure accuracy, we always strongly recommend seeking independent, professional advice tailored to your specific situation before making any investment or financial decisions.