There is a lot involved when you are buying your first home. From cobbling together a downpayment to school districts, closing costs, or planning the moving van. House shopping requires a lot of thinking and planning. Despite all the mental and financial resources it takes there are advantages when you consider buying a fixer-upper. Investing a fixer upper is a very risky but smart move to make. Whether you are interested in buying and reselling your property or simply creating your dream home, it will help you to have some extra change left in your pocket.
There are some amazing architects out there, but the chances of someone designing the perfect home for you are very slim. This is why it is a good idea to consider buying a fixer upper to turn your vision into a reality. The downfall of a fixer upper is that it will take some time, so you will have to be patient, but the end result will definitely be worth the wait. If your resolution is being a homeowner, saving money, and doing a little DIY, this collaborated article is for you!
Benefits of Buying a Fixer-Upper
Photo by Blue Bird from Pexels
Photo by Blue Bird from Pexels
Lower Prices
Fixer-uppers are golden tickets for budget-conscious home seekers. A lower-priced home can allow you to get into that target neighborhood that you want to live in. If you or your partner can DIY and slam a hammer, you can skip the labor charges that come with renovations. If you are not the handyman in town, get a quote from the local renovator before purchasing the home. The amount that you can save varies depending on the required repairs, which includes the extent of the damages, the area, square footage, and if you can repair it yourself or get a renovation team. It is recorded overall that, in the end, you will pay less money than buying a move-in-ready house. Using a tdsr can help you calculate which price range will work for you when house hunting.
Increased Equity
It is a great advantage to build additional equity in your home. By building equity, you are increasing the resale value. If this is your first home purchase, buying a home that requires TLC can be helpful. If you’re still young, you may not want to settle down yet or live in one place forever. If you plan to sell the house in the future, you can get a lot more than what you paid for back then. Homeowners have found that the greatest return on investment is with updated kitchens and bathrooms.
Personalized
When buying a fixer-upper and making some renovations, you can call the space your own. You can do it according to your time, budget, taste, and style. When looking at all these little things you upgraded, you will feel immense proudness. With a few renovations, you can go from a fixer-upper to your dream home! Think about it, you have control over the materials, the layout, all the colors, and textiles. You have the freedom that did not cost you an arm or a leg. There is a study that states when you make your home truly yours; you will be incentivized to maintain it; it is a psychological phenomenon that compels you to protect and nurture things you have put financial, mental, and physical resources into. So why wait? Save your money and make a home that genuinely represents you.
Renovation Loans
It is not wise to make debt for every small thing so a good motto to follow is to only make debt for your home and your car. If you consider buying a home that needs renovations, get a renovation loan or renovation mortgage. Both programs allow you to borrow money based on the improvement value of the home. Do some research and speak with a professional mortgage broker to determine which option is right for you. By getting yourself the correct home loan, you can also save a lot of money.
Buying a fixer upper is a very big decision and it should certainly not be a rushed one. Take your time and do a lot of research about the history of the property as well as the area that the property is located in. Although there are a lot of benefits that come with buying a fixer upper, there are also a lot of risks that accompany the ideas as well. A lot of your time will be invested into the project so make sure it is a success, because if not done correctly, a fixer-upper will be the reason that you lose a lot of money. But, other than that, tackle the project head on and watch the house of your dreams appear right before your eyes!