10 Jul 2017

Is Buying a Fixer-Upper a Good Investment Idea?

What is a Fixer-Upper?fixer-upper is a property that is not yet ready for you to move into because it requires construction work before you can occupy it.
 
Pros of Buying a Fixer Upper

  • Price Discount: One of the major advantages of buying a fixer-upper is that they are cheaper than a home that doesn’t need renovating. It provides an opportunity for those who are eager to purchase a property the chance to do so if they are unable to afford a home that is in good condition. A home that requires renovation is priced accordingly because the owner is aware that it can’t be occupied unless it is remodeled. 
  • Design Choices: Another advantage of buying a fixer-upper is that it gives you a blank canvas to work on. When you enter into a deal knowing that you are going to have to spend money to fix it up, it gives you the freedom to design the house in the way that you desire. While it means you have to put effort into the project, it will be worth it when you see the finished results.

Cons of Buying a Fixer Upper

  • Extra Work: fixer-upper is going to need a lot more work than a home that is ready to occupy. Not only will you have to do the research to find builders and contractors, you will also have to spend time searching for materials and building products.
  • Extra Time: Remodeling a home is no small task and it can take months before your new home is actually ready for you to move into. You are going to have to be patient and wait for your dream to be realised.
  • Surprises: There are always going to be unexpected surprises with a fixer-upper. Until you open pipes and check behind walls you won’t know what’s behind them.

Things to Consider When Buying a Fixer Upper Before you make the decision to purchase a fixer-upper there are certain things that you are going to have to take into consideration. 

  • Remodelling Costs: You will need to make sure that your budget is going to be sufficient for the costs of remodeling because it can get quite expensive.
  • Your reasons: Everyone is going to have their own reasons for deciding to buy a fixer upper. Make sure that you are certain about what yours is.