PROPERTY NEWS - Purchasing a fixer-upper can be an extremely beneficial financial endeavour. However, only if the buyer has taken the time to do their research and followed the right procedures to ensure they are making a sound investment decision.
Irrespective of the kind of property the purchaser is interested in buying, it is imperative that certain principles are adhered to, to ensure they are protecting themselves against purchasing a potential money trap.
Doing the groundwork is even more important when the purchaser is considering a home that would be regarded as a fixer-upper because there will be far more expense than just the purchase price.
A lot of additional money will be spent on fixing up and renovating the home, so a fixer-upper investor needs to be savvy and know when the purchase is worthwhile and when they should walk away. Discerning between a home with potential and what to steer clear of is a key element to investing in fixer-upper property.
While most buyers prefer to purchase property that is well-maintained, there are numerous reasons that draw investors to fixer-upper homes.
A big draw-card is that fixer-upper homes often sell for far less than other homes in the same neighbourhood, which means that if they have the capital to spend on renovating the property, they could secure a higher profit margin when they sell. Obviously, this is dependent on how savvy the investor is with their money when renovating the home.
Another reason that certain investors opt for these kinds of homes is the fact that there is less competition in the market for fixer-uppers. Lower demand for these homes is one of the reasons that they will sell at lower prices than other homes in the same area.
It is said that an investor makes their money on a property purchase when they buy and not when they sell because the success of the investment is based on the decisions made at the beginning of a transaction. If the right decisions are made, it is more likely that the investor will see a healthy return.
The ideal home could be covered under a veil of various essential repairs that would normally chase away potential buyers. However, fixer-upper investors will need to see past the property’s outward appearance and envision the home’s true potential.whether a home is a good investment.
