While you might be looking for a fixer-upper, you want to make sure you’re not purchasing a money pit. But how do you know whether your fixer-upper is going to be worth the renovations and work you do to it?
One of the most expensive parts of a house to repair or replace is its structure. Make sure you get a professional building inspection of a property you’re considering purchasing if you’re concerned the building isn’t structurally sound. Being confident in the structure is worth the small expenditure for a building inspection report.
Older homes can have inefficient layouts that can make it more difficult to work with. Some of the limitations poor floor plans can include are boxed-in rooms and pools that take up the entire backyard. While you may be able to change the layout of the home, you’ll need to make sure doing so won’t affect the foundation of the home and that they can be affordably updated. Knocking out an interior wall that supports the roof is probably going to put your budget out.
The big three rooms you’ll want to update first are the rooms you’ll be using the most – the kitchen, bathroom and living room. These rooms are also the spaces that will fetch you more money if you’re planning on flipping the house and selling it for a profit. Consider investing most of your budget and focus on these three rooms first.
Renovating a fixer-upper to transform it into your dream home is exciting, but it’s important not to get too carried away. Renovating a home isn’t easy so start small and work your way up to larger scale renovations. Keep your eye out for a fixer-upper that doesn’t require as many renovations if you’re worried about sticking to budget or time constraints.
If you’re planning on renovating the home and selling it for a profit shortly after, make sure you don’t overcapitalise. When renovating for the purpose of profit, make sure you stick to a budget that’s manageable. Staying within your limits and making practical decisions over emotional ones will limit your overspending and allow you to keep a lid on the spending.
While purchasing a fixer-upper can save you money upfront, renovating and repairing the home can end up costing a lot of money. It’s important you find a fixer-upper that is within your budget limits and your means.