Location, location, location — the number one rule in real estate. But what if the location you desire seems a bit out of your price range? As an alternative, you could consider looking for a fixer-upper in the neighborhood, or stay in your current residence, and turn a modestly priced house into your dream home.
In a tight housing market, there’s often a shortage of affordable, move-in-ready homes, which makes renovating a popular option for savvy spenders and visionaries who look at older, bank-owned or even vacant properties and see opportunity. When there’s not enough houses for sale to meet demand, or you like your current home but think it could use some updating, your best option could be to purchase a fixer-upper or borrow to update your current home.
Advantages of Fixer-Upper Homes
1. Historic charm:
Fixer-upper homes often come with classic details, including antique door knobs, ceiling molding, unique layouts with touches like breakfast nooks, and era-specific exterior appearances. Often, these features can be preserved and incorporated into a remodel project, adding instant charm to your home.
2. Spread out costs:
Unlike new construction, fixer-upper homes can, if you prefer, be rehabbed over the long term. If you’re willing to manage a running checklist and complete projects one at a time, you can spread the total cost of the remodel over several smaller expenditures, allowing you to enjoy the work while managing cash flow.
3. Feeling of accomplishment:
Buying a fixer-upper home means getting in on the ground level. You may be a handy, DIY type who plans to get dirty and perform a good portion of the work yourself. Or maybe you’ll play the role of decision maker, directing traffic and shopping for contractors and professionals to do the jobs. Either way, you’ll be in the middle of the action, and when the project is complete, you’ll be able to stand back and admire the fruits of your labor.
4. Making a sound investment:
When you decide to buy a fixer-upper, you’re often trading the convenience of a move-in-ready home for the lower up-front cost of a fixer-upper, allowing you to get in at an initial price that better suits your finances.
5. Lower tax rate:
Since tax rates are based on the sale price of your home, buying a fixer-upper home may save you some cost when it comes to property taxes in your neighborhood or city, spreading savings out over time.
Are you in the market for a dream home and willing to put in some legwork and a little elbow grease? There are a variety of options for home improvement loans, including loans that let you borrow on top of the value of the home, based on the anticipated value after the home improvements are complete.
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