A New Approach To Home Ownership
Housing prices have been fluctuating like mad over the last decade, and there’s some places in the country where it’s just not feasible to buy a new home. Many homes that have had previous occupants are in perfectly fine condition as an alternative, but even those are exceptionally pricey. Then there are the fixer-uppers.
Fixer-uppers seem like more trouble than they’re worth, but this doesn’t have to be the case if you’re savvy and willing to work hard. Some don’t even require that much effort; you might just need to install some new faucets, paint the walls, redo the roof, put in a few months’ landscaping, and change out the carpets.
The level of work you’re willing and able to do will modify what sort of fixer-upper you ultimately choose. Also, your abilities may act as a limiting agent. However, there are some situations where a fixer-upper repaired through selective contractors can still turn a profit. So with this in mind, following we’ll briefly explore two primary benefits of a fixer-upper home.
1. Get More Than You Paid For
In Detroit you can buy mansions for just a few grand. Sure, they’re fixer-uppers, and they’re in neighborhoods unlikely to appreciate any time soon. But you get more than you pay for.
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If you’ve got location-independent income, such as an online job may afford, such a situation can be perfect for you. Another tactic might be buying a house in a state where housing prices are low, allowing your dollar to have greater reach.
2. Flipping A Fixer Upper
A $19k Amazon tiny home kit provides a backyard residence while you fully restore a property over a couple years. Do it right, and $100k invested in both tiny home and fixer-upper can yield $200k of property value, or more. Doing a flip isn’t necessarily cheap, but even if you don’t go the tiny home route, proper interior infrastructural work can recoup your investment.
Fixer-Uppers Are Considerable
While we’ve only covered two distinct advantages of approaching homes that are a bit run-down, the truth is, there are plenty of advantages to a fixer-upper home. Granted, there are limitations; but those will depend on who you are, what you’re willing to do, and your budget.
Choose a fixer-upper that you can handle, and put real TLC into the restoration process. You can save money in acquisition, and turn sweat-equity into real money when you re-sell the upgraded property. Or, you can make the property part of your family’s assets, and have a fine home for a bottom-dollar price.
3. Perfect Vacation Home For You!
When purchasing an investment property, one should consider the home’s condition. But this is especially true when you are looking to buy a vacation home that you might not have the time or resources to make significant repairs or improvements.
Most likely, you are not going to be present to oversee any ongoing home improvement projects. In addition, extensive repairs might take away from your earnings.
Even if you do decide on a fixer-upper, try to choose a place that allows you to complete the necessary work at your own convenience while continuing to rent it out to vacationers along the way.
Even if you are unable to rent the property at a premium price, it’s better to have a vacation home with some earning potential right from the start. You can always raise the rent once additional improvements are made.
4. Budget for Security Features
In addition to changing the locks and making home safe. There are various other security features that not only protect your assets but improve the resale value of your home. People often shirk spending extra on enhanced security because they have other spending priorities– the appeal of shopping for a beach wedding dresses while trying to find a registry while planning a wedding far exceeds the desire to shop for locks and motion sensors.
One of the main security features to budget for, if not already included, is a home alarm that you can connect to high-speed internet. Crimes take place in quiet neighborhoods because of the opportunity. In other words, living in a nice area often results in complacency.
Other things to budget for– if they aren’t included in the home already– are motion sensor lights to install in dark areas of the yard and ground-floor window bars. Criminals will often look for people who are in the process of moving into a home, as they are often caught unprepared.