Fixer-uppers tend to get a bad rep. Many people simply don’t want to be saddled with renovations after going through the length process of buying a house.
However, if you play your cards right, a fixer-upper just might be the perfect opportunity for you to get your dream home in your dream neighborhood and with more space to spare. Interested? Here are 6 reasons to buy a fixer-upper.
Let’s start with the most obvious reason.
A fixer-upper costs cheaper.
If a home needs some work done, it will definitely be listed at much lower than market price. Any money you save on the cost of the house can go into other expenses including renovations.
You can get a bigger house.
You can get more space at a lower price if you buy a fixer-upper. And then you can renovate little by little until you realize your dream home. This is perfect if you don’t have the funds to spend on a big property upfront.
You get a clean slate.
This is the perfect time for you to put on your decorating hat and customize your home to your heart’s content. With a fixer-upper, you call all the shots. You get to decide where everything goes, what colors to use, and so on. You don’t have to settle for any part of the house you don’t like.
Get into your dream neighborhood.
A fixer-upper gets you into your dream neighborhood more easily. If you want to live in a pricey neighborhood but don’t have the cash to spend on a brand new home, a fixer-upper is the way to go. A great location adds value to your home as well, so once you renovate, your home’s value will soar.
You can get quicker equity.
If you can renovate your home as soon as you buy it, its value will increase quickly. Aside from raising your net worth and the value of the house, this also allows you to refinance sooner rather than later and get a great return on investment.
You can get a 203k loan for renovations.
The Federal Housing Administration’s 203k loans gives owners an affordable way to purchase a home and renovate it immediately. This means you don’t have to dip into your own cash reserves in order to renovate as soon as possible.
Convinced that a fixer upper is just the right choice for you? Don’t make your decision just yet! On the next article, we’ll discuss the reasons to avoid buying a fixer-upper.