Buying a fixer-upper home seems like a great way to get the property you want. You buy something that is a little dilapidated for a bargain, and then you fix it up, making it into something stunning – worthy of the dream home title.
It all sounds so easy, but there’s a catch – it involves a lot of hard work and dedication. Sometimes you don’t even have a water or electricity supply for the first few weeks.
In this post, we’re going to take a look at some of the pros and cons of buying and fixer-upper and what they mean to you personally. So, without further ado, let’s take a look:
- You have the freedom to create what you want. On the one hand, you could see a fixer-upper as a massive project – something that is going to take an enormous amount of energy to turn around. On the other, you could view it as a black canvas, ready for you to paint it how you like. Fixer-uppers are a chance for a fresh start, allowing you to put your mark on a property from the get-go.
- You can boost the value of the asset. Homes are assets. As such, they can appreciate when you invest in them. Buying a fixer-upper, renovating it, and then selling it on allows you to generate a handsome return – much better than anything you’d get in a savings account.
- You can pay less upfront. Did you know that fixer-upper properties often sell for 25 to 50 per cent less than the market value? That provides you with tremendous opportunities to restore them to their former glory and get on the housing ladder for less money.
- You can flip your home. While flipping houses sounds impractical, personal and business storage facilities make it much more convenient. You just keep all your possessions off-site, buy a property, do it up, and then flog it for more than you paid. Then, once the sale goes through, you collect your possessions and move on.
- You can’t just move in. Nothing is stopping you from moving into a dilapidated home if the only problems are peeling paint and a lack of carpets on the floor. But most fixer-uppers are not suitable for human habitation. As such, you can’t just move in. Usually, you’ll need to rent somewhere else at the same time.
- You don’t know how much it’ll cost to bring up to standard. Usually, there’s no good way to tell ahead of time, unless you’re extremely experienced in the property renovation industry.
- You may need to make structural changes. Fixer-upper properties often require a lot of fixing. For that reason, you may need to do work on the foundations or roof. And that sort of thing involves a lot of time and money.
- You can spend upwards of a year restoring a fixer-upper. Sometimes what seems like a quick job can wind up taking you a massive amount of time, preventing you from having a home you can use.