Buying a fixer-upper OR a move-in ready home...

Buying a fixer-upper OR a move-in ready home...

When deciding between a fixer-upper and a move-in ready home, it's important to weigh the pros and cons of each option to determine which best suits your needs and goals.

By carefully weighing the pros and cons of each option, you can make an informed decision that aligns with your financial situation, lifestyle, and long-term goals. Buyers are urged to recognise the undeniable opportunities in purchasing fixer-upper properties.

Fixer-Upper:

Pros:

1. Lower Purchase Price: Fixer-uppers typically have a lower purchase price compared to move-in ready homes, making them more accessible for buyers on a budget or those looking to invest in property.
2. Customization Potential: Buying a fixer-upper allows you to customize the property to your tastes and preferences. You can choose the finishes, materials, and layout that best suit your needs.
3. Increased Value: With the right renovations, a fixer-upper can significantly increase in value. This potential for appreciation can provide a substantial return on investment.

Cons:

1. Renovation Costs: Renovating a fixer-upper can be expensive and often involves unexpected costs. It's essential to budget carefully and be prepared for additional expenses that may arise during the renovation process.
2. Time and Effort: Renovations can be time-consuming and require significant effort. Managing contractors, obtaining permits, and overseeing the work can be stressful and demanding.
3. Immediate Liveability: Fixer-uppers may not be immediately liveable, requiring you to find alternative accommodation during the renovation period.

Here are some of the definite advantages of buying a property in need of some TLC:

1. Buying a property at a good price

Fixer-upper properties are not high up on the list of desirability, and as such they can in most cases be bought at a fantastic price from an agency and a willing seller. Sellers of fixer-upper properties are aware that their properties may be a difficult sell and will take this into consideration when deciding on a selling price for their home. Those looking to get into the market as first-time buyers could benefit from the pricing of fixer-upper properties.

2. Freedom to put your own creative spin on things

Putting your creative spin on things allows you to bring your vision to life. If your fixer-upper property does not require major reworking, then cosmetic changes may be the way forward. Simple changes such as interior decorating and lighting could be all that is needed to make the transformation of your property a success. If you have a certain colour scheme in mind or would like to use one of your favourite colours, this would be the perfect place to live out your colour scheme dreams.

In letting your creativity run wild, you are free to reassign rooms to serve different purposes than what they may have initially been used for. This could mean assigning would-be living areas as bedrooms, extending kitchens by breaking down walls, etc. The options are limitless and entirely up to you.

3. You can upgrade your property and 'flip' it for a tidy profit

Buying a property for a potential upgrade is not always about using it as your residence. At times, this may be for the purpose of 'flipping'. Flipping properties has become widely popular in recent years with shows such as Flip or Flop and Fixer Upper becoming television sensations.

Flipping a property simply means taking a property (in most cases fixer-upper properties) and completely renovating it to be resold once again, whereby the seller makes a considerable profit from the sale of the renovated home.

Whatever you may choose to do with the fixer-upper you buy, the opportunities are endless and can be achieved with just a little bit of effort, imagination and innovation.

Here are some of the pros and cons of buying a Move-In Ready Home:

Pros:

1. Convenience: Move-in ready homes are immediately liveable, requiring little to no additional work. This convenience is ideal for buyers who need to move in quickly or prefer not to deal with renovations.
2. Predictable Costs: With a move-in ready home, the purchase price is more predictable, and there are fewer chances of unexpected expenses related to property repairs and upgrades.
3. Modern Amenities: Move-in ready homes often come with modern amenities, updated appliances, and contemporary finishes, reducing the need for immediate upgrades.

Cons:

1. Higher Purchase Price: Move-in ready homes usually come with a higher purchase price, reflecting their updated condition and convenience.
2. Limited Customization: Since the property is already finished, there may be limited opportunities for customization to your specific tastes and needs.
3. Less Investment Potential: While move-in ready homes may appreciate in value, they typically offer less opportunity for significant value increases compared to fixer-uppers.

Extract from Property 24