THE PROS & CONS OF BUYING A FIXER UPPER
AN ATTRACTIVE WAY TO GET YOUR FOOT IN THE DOOR OR MONEY PIT?
Many buyers when faced with finding a home to purchase in Victoria, BC choose to go with a fixer upper. This fact is no surprise when you consider that Victoria housing prices are among some of the highest in Canada. Let’s take a look at why people choose to buy homes that need work and other reasons why a fixer upper may not be for you.
LET’S START OFF WITH THE TWO TYPES OF FIXER UPPERS YOU’LL FIND ON VANCOUVER ISLAND
The “Grandma lived her whole life and died here” special:
Ok, well maybe not Grandma died here… but it’s possible. These homes are typically very well maintained because the owners bought the home new 50 years ago and took pride in ownership. When you walk into these properties, they’re easy to spot because the shag carpet is immaculate along with the floral wall paper. They look like show homes of yesteryear. This is preferable for the first time buyers who want sweat equity opportunities and the option to DIY some of the updates.
The classic money pit:
When you say “fixer upper” this is what usually comes to mind. Completely dilapidated to the point where you’re not sure if the floor will hold your weight. When choosing to put money into a property like this, there is huge upside to making large profits if renovated well. Alternately, to the inexperienced buyers with a limited budget, these can be known to bankrupt and cause divorce. My advice is to leave these to seasoned homeowners who are well connected in the home building business.
THE PROS OF BUYING A FIXER UPPER
1. Affordability
One of the biggest advantages of buying a fixer-upper in Victoria, BC, is affordability. Fixer-upper homes are often priced lower than move-in ready homes, allowing buyers to get more house for their money. This can be particularly appealing to first-time buyers who may be working with a limited budget.
2. Customization
Buying a fixer-upper in Victoria, BC, also provides the opportunity for customization. Buyers can choose the finishes and design elements they want, rather than inheriting the previous owner's style. This can be especially appealing to those with specific tastes or a desire to create a unique living space.
3. Investment Potential
Fixer-upper homes have the potential to increase in value significantly, depending on the extent of the renovations made. If buyers are willing to put in the time, effort, and money required to renovate the home, they could see a significant return on investment when it comes time to sell.
4. Personal Satisfaction
There's a sense of satisfaction that comes with renovating a home and making it your own. Many people find the process of taking a rundown home and transforming it into a beautiful living space to be rewarding and fulfilling.
CONS OF BUYING A FIXER UPPER
1. Hidden Costs
One of the biggest downsides of buying a fixer-upper is the potential for hidden costs. It's important to factor in the cost of materials, labor, and unforeseen expenses when creating a budget for renovations. Failure to do so could result in significant financial strain.
2. Time-Consuming
Renovating a home takes time and effort. Buyers should be prepared to put in the work required to transform the home. This can be especially challenging for those with busy schedules or limited DIY skills.
3. Potential for Additional Stress
Renovating a home can be stressful, particularly if unexpected issues arise. Buyers should be prepared for the potential for additional stress during the renovation process.
4. Difficulty Reselling
While fixer-upper homes have the potential to increase in value, they may also be more challenging to resell. Some buyers may be hesitant to purchase a home that requires significant renovation work, which could limit the pool of potential buyers.
TIPS FOR BUYING A FIXER UPPER
1. Hire a Home Inspector
Before purchasing a fixer-upper, it's essential to have a home inspection done. This will help identify any potential issues with the home, allowing buyers to factor in the cost of repairs when creating a budget.
2. Create a Realistic Budget
Creating a realistic budget is crucial when renovating a home. Buyers should factor in the cost of materials, labor, and any unforeseen expenses when creating a budget. It's also important to leave a buffer for unexpected costs that may arise during the renovation process.
3. Consider DIY vs. Hiring Professionals
Buyers should consider their DIY skills and comfort level when deciding which renovations to take on themselves and which to hire professionals for. While some projects may be relatively easy for those with DIY experience, others may require the expertise of a professional.
4. Don't Overlook the Location
While the condition of the home is important, it's also crucial to consider the location. Buyers should take into account factors such as proximity to schools, parks, shopping,