There are a lot of ways to buy property. Most people, especially if they’re buying a family home, want a place that they can move into right away and settle down. Investors can also rent these properties to tenants immediately.
But you can also buy properties, often known as “fixer-uppers,” that are a bit less shiny and new. As the name suggests, these properties need work to be done before they can be made habitable or comfortable. But why consider project properties like this, and how can you bring them to their former glory without blowing your budget?
Why Invest in a Fixer-Upper
If you want to buy a property, but don’t want to spend a huge amount of money to start with, a fixer-upper gives you more affordable options. You could then work on it over time and do a lot of work yourself, which could mean that you end up with a functional home in a matter of months or years.
Of course, you will have to spend money to make it habitable, especially if you want to rent it to tenants or sell it to someone else, but you can control the costs of renovations. This means you can boost the home value and make a massive profit.
Create a Budget
The first step to control your spending is to create a budget. Work out in advance what you can afford to spend to buy the property and to then renovate it. This will prevent you from taking on projects that are too expensive.
If you take out a mortgage or another loan, it’s also a good idea to come up with a repayment plan. Often, the profits from the sale or the rental income can cover the cost of the house project and then some.
Get a Survey
If possible, you should get a survey of every house before you buy. This does cost money, but a surveyor can find potentially expensive issues that you might not have noticed. In some cases, this can save you from buying a house that might need knocking down and rebuilding.
You should also look out for protected properties, as these can restrict what type of work you can do to restore them and make them habitable. These are all things you need to find out before you purchase a property, as otherwise you’ll be stuck with it.
Hiring Contractors
While you can sometimes do a lot of work yourself to cut down on costs, especially if you have DIY or building experience, you definitely should leave some things to the professionals. Major structural work, such as roof repair and installation, should be handled by contractors like Mr Remodel Roofing.
Contractors can often work more quickly and safely than one person, as they have tools and experience you might not have. Make sure to get contractors who have a good reputation, so you know that you won’t have to find someone else to fix a patch-up job later down the road.
