If you are tempted to buy a fixer-upper to transform into your dream home, you need to be aware of the potential pitfalls. Sure, a fixer-upper is a fantastic way of purchasing a cheaper property that you can then put your own stamp on. But, there are also a whole host of nasties that could potentially come along with it. Consider how much of a fixer-upper you want. Are you happy with a fully derelict shell of a building with structural defects or is a house that needs modernized decor as far as you’re willing to stretch. Fixer-uppers are becoming a more popular buy for those discerning homeowners that want to make money on their bricks and mortar. Read on to find out about the fixer-upper fundamentals that you need to be aware of.
If you buy a fixer upper house, make sure you pay for a survey first. While this is money that you need to fork out prior to your purchase, it could save you a small fortune in the long run. If a property has subsidence or heave, the foundations will need repinning. This can cost a huge amount of money and could leave your home unmortgageable. The survey cost will seem like a drop in the ocean compared to how much money it can save you. Structural issues don’t have to put a halt on your property purchase, but they can be good leverage when you are negotiating the purchase price. Get the home for the right money, and you could still be onto a profitable purchase.
Sometimes fixer uppers have been in a sorry state of repairs for years. This means you might have unwanted guests frequenting you pad. Whip up some home security such as an alarm and CCTV as soon as possible and make sure that your new pad is well lit at night. This can make any would be thieves, squatters or reprobates less likely to make your fixer upper their place to settle down for the night. As you begin working on the property, the chances are these unwanted residents will move on. Keeping your assets secure is vital for any home, but more so when you purchase a fixer upper.
Just because a fixer upper is ridiculously cheap doesn’t mean that it is a good buy. You need to focus on the sort of location you want to live in. Try and hunt out the worst house on the best street. You can always change the exterior and interior of a home, but you can rarely alter its location. That up and coming area may have been up and coming for the past two decades. Instead opt for the location that is well established, highly regarded, and has seen property price increases for the past five years running. A fixer upper in this location is a sure fire bet to increase in value and provide you with a chance to outperform the housing market.
Buying a fixer upper can be perilous. However, by using your own common sense, gut instinct and by following this guide, you can be sure of a superb blank canvas from which to create your dream family home.
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