Is Buying a Fixer-Upper Worth It?
Category Advice
The prospect of investing in a fixer-upper may sound enthralling - and it can be - but are you certain you're aware of the investment you'll be making?
Here's our advice:
What to consider before buying to renovate
Pick the right project
Before deciding to purchase a fixer-upper, you need to look at the neighbourhood. Doing extensive renovations on a property in an area with older, low-income homes is not going to be worth your money if you want to sell in the future, as you won't get close to what you put in. If you see an opportunity to fix up a property that needs some TLC, but is situated in a well-established area, future buyers will pay for the property as well as the neighbourhood.
Once you've found a property in a suitable area, the next thing you want to do is have an inspection done on the house. You'll most likely not have the expertise to know the full extent of the work that needs to be done without a professional coming on site. Make sure that most of the property's needs are cosmetic and not structural, or you'll be looking at some heavy renovation costs.
Do the calculations
After having the property inspected, get a couple of builders in to give you estimated quotes on how much will need to go into fixing the property up. If you skip this step before purchasing, you'll be going into the project blindly.
On top of the estimated costs, you need to ensure there is a budget for unexpected costs. Often buyers take on a fixer-upper without the full capacity to financially support the project, and end up stuck with unfinished renovations that they can't afford to continue.
Be prepared to be patient
Fixing up a property takes loads of patience! You need to go into it with the motivation that's going to last. If you're a very busy person, a move-in ready home might be the more suitable option. If you decide to go at the project alone, or plan to DIY some of the renovations, be prepared to use your free hours and weekends on your new fixer-upper.
The bigger your budget, the more hands you can afford to have on deck and the quicker you will finish the project, but if you're willing to sacrifice the time, you'll save a huge amount of money by pitching in yourself.
If you want to get on the hunt for a worthy fixer-upper, we'll find you a project worth your investment. Contact us today.
Author: SApropety.com
