Is Buying a Fixer Upper Property Right for You?

If you’re on the hunt for a new house, you may have come across listings that sound attractive; properties that offer “huge potential” or are described as “renovator’s delight”.

In real estate lingo, these homes need some updating before they’ll be ready for move-in day. 

Fixer-upper homes can be a great way to get onto the property market at an affordable price in this current market of rising house prices – so why not look. 

However, if you are considering investing in a fixer-upper, there are several things to keep in mind. If moving in quickly is a priority for you, purchasing an older home may not be the best choice. Renovations can take longer than expected with delays due to availability of materials, worker shortages and unforeseen weather conditions.

However, if you don’t have a strict deadline and are prepared to put the time and effort into renovating your house, it could be a great option.

Below are some the things to consider:

Lower Purchase Price

One of the primary advantages of buying a fixer-upper is the potential for a lower purchase price compared to move-in ready homes. Fixer-uppers are often priced below market value, allowing savvy buyers to secure a property in a desirable location at a more affordable cost.

With a lower purchase price, buyers can potentially save a substantial amount of money, which can be allocated towards renovations and improvements, turning the house into a dream home.

Increased Return on Investment

When it comes to real estate, a fixer-upper can be an excellent investment opportunity. By purchasing a property that requires renovations, you have the potential to increase its market value significantly. With strategic improvements, such as upgrading the kitchen, bathrooms, or adding additional living space, you can create a home with higher desirability and demand.

As a result, your investment in a fixer-upper can yield a substantial return on investment when it comes time to sell.

Customisation and Personalisation

Buying a fixer-upper provides an exciting opportunity to create a home that is uniquely tailored to your preferences and style. Unlike move-in ready homes that come with predetermined designs, a fixer-upper allows you to make design choices and customize the space according to your tastes.

From selecting paint colors to choosing flooring materials and fixtures, every aspect of the renovation process provides a chance to bring your vision to life and create a home that truly reflects your personality.

Learning and Skill Development

Purchasing a fixer-upper can be an incredible learning experience, providing an opportunity to develop new skills or enhance existing ones. From basic DIY tasks like painting and landscaping to more advanced renovations like electrical and plumbing work, a fixer-upper allows homeowners to gain hands-on experience and expand their knowledge of home maintenance.

This newfound expertise can save you money in the long run and empower you to tackle future projects and repairs confidently.

Building Equity

As you invest time, effort, and money into renovating a fixer-upper, you are simultaneously building equity in the property. Equity is the portion of the home’s value that you own outright, and as you improve the property’s condition and market value, your equity grows. This increased equity can be beneficial in the future, providing opportunities for refinancing, securing additional loans, or even leveraging it for other investments.

Building equity through a fixer-upper is a smart financial move that can offer long-term advantages.

Potential for Unique Features

Fixer-uppers often possess a unique charm and character that may be absent in newly constructed or move-in ready homes. These older properties may have original architectural details, historical significance, or unique features that cannot be replicated. By choosing a fixer-upper, you have the opportunity to restore and preserve these unique elements, creating a home with character and a story to tell.

Ultimately, conducting thorough research on both the condition of the house as well as similar homes in the area should help you decide if investing in a fixer-upper is right for you.

Before taking on any major upgrades, it’s important to conduct both a pest and building inspection. Fixer-uppers can come with certain advantages – one being that the cost of stamp duty is usually lower due to their reduced purchase value.

However, you need to consider more than just the initial purchase price and renovation costs when deciding if this route is right for you. 

Renovating a home requires a lot of time, energy and effort but if your end goal is to turn it into your dream home, then the extra work can be incredibly rewarding!

Just keep in mind that if you are buying an investment property then opting for more traditional style choices will likely yield better results.

Are you looking to purchase a property, check out our currently available properties.

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