Fixer-upper properties. We all know and love them. There’s something about finding the perfect property that might be a little dated or run down and fixing it up to reach its full potential. If you find the perfect fixer-upper, you can maximise your return on investment, but first thing’s first, finding the right property. If you do not choose the ideal fixer-upper, you could end up reaching even deeper into your pockets in order to cover all the unforeseen costs involved.
Save yourself the disappointment by keeping an eye out for the following elements when searching for the ideal fixer-upper property:
There’s a lot that you can change about a property, but the one thing that you simply cannot change is the location. If the property is located in a bad neighbourhood, close to undesirable structures, or next to the most hideous apartment block you’ve ever seen, the chances are that you will struggle to find potential purchasers, no matter how nicely the property has been renovated.
When searching for the ideal fixer-upper, make sure that the property has a sound structure. This will help to keep renovation costs down. Properties that have structural faults or unstable foundations require a lot of money and expertise to repair. So, how do you determine the structural condition of the property? We recommend conducting an expert inspection. Remember, prevention is better than cure and you don’t want to discover these faults after the renovation process has already started.
We know what you’re thinking, if the layout is all wrong, you can just knock down some walls and open the space, right? Wrong. Not all layout and design flaws can be fixed by knocking down some walls and certainly not in a cost-effective manner.
We understand that construction and building costs are often unpredictable, but you need to have an estimated ballpark figure of what the renovation will cost you before you purchase the fixer-upper.
The takeaway here is that if you do your research, keep your eyes wide open and understand what you’re getting yourself into, renovating a fixer-upper can be a rewarding and profitable experience.
This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your adviser for specific and detailed advice. Errors and omissions excepted (E&OE)