The Pros & Cons of Buying a Fixer-Upper

Purchasing a home can be an exciting journey full of surprises and challenges, especially if you have your heart set on a fixer-upper. 

Fixer-uppers are appealing to plenty of home purchasers. Those with a keen eye and creative mind can buy a run-down property at a discounted rate, breathing new life into it and restoring it to its former charm. Whether you're planning to settle in or flip it for a profit, it’s important to consider your financial situation, lifestyle, and capabilities before you make your decision. 

Let's unpack and weigh in on the good, the bad, and the ugly of purchasing (and fixing up) a fixer-upper. 

Pros

Profitable Renovations

While renovation costs are inevitable, it’s important to note that the value added to your home as a result of this work is typically more than the cost you incur — sometimes much more. And, if that home is in a good area, it’s likely to appreciate faster. 

Still, it’s very important to run the numbers beforehand. That means having a clear idea of the work required — or potentially required — and the associated costs before purchasing the home.

Peaceful Purchases

Fixer-uppers often present an opportunity to move into a desirable neighbourhood for less. You are also less likely to find yourself in the middle of a bidding war. 
 

Creative Freedom 

From designing your dream kitchen to building a relaxing outdoor space, a fixer-upper serves as a blank canvas for such creative renovations. The end result is a home that has been custom tailored to your lifestyle.


Cons

Renovation Uncertainties

No matter how well prepared you may be, there will be surprises. That means unanticipated costs and delays in your project. That doesn’t mean it won’t be worth it, but it does make it more important to build in a buffer in terms of your finances and timelines.

This is also why it’s important to understand your own capabilities and personality. If you are someone who is comfortable with these sorts of risks, or if you’re capable of taking on some of the additional handiwork yourself, buying a fixer-upper may seem more worthwhile.

Construction Chaos

Unless you enjoy the idea of living in a construction zone for months on end, prepare for disruptions to your everyday life. 

Buying a fixer-upper isn’t for everyone, but for the right person it can be the perfect opportunity. If you’re looking for some expert guidance on what home may be right for you, contact our team at Capital North today.