Fixer Upper Fundamentals Everyone Should Be Aware Of
The thought of purchasing a fixer upper, doing it up and renovating it, to then make a profit to top up your retirement fund is a dream for many. However, if you have the cash in your savings account just sitting there and you want it to work more aggressively for you, then a foray into the property world might be for you. Purchasing a fixer upper is fun, but it’s also risky. There are a number of things you need to consider specific to your money making venture that you might not have thought of if you were buying for yourself. Take a look at these fixer upper fundamentals that every prospective purchaser should be aware of.
Location Is Key
Remember, you are purchasing this dwelling to renovate and sell on. Your motivation is to make money, not to create your dream home. When scouring the market, make sure your priority lies with the location of the humble abode. You want to purchase the worst house on the very best street that you can afford. Then it is your mission to make this house the very best house on the best street, breaking the ceiling price and making a profit for you to then reinvest into another venture.
Scheme Of Works
To purchase a true fixer upper, you need a comprehensive plan of renovation to carry out within a set timescale and to a stringent budget. It’s vital that you can get inside and assess the damage. You may have chosen to buy a property at auction where the cheapest homes tend to be sold. As such you might have to undertake some water damage restoration, fire damage assessments or a structural survey to assess the integrity of the dwelling. When you do finally pick up the keys, ensure that you go room by room and make a list of every single job that needs doing no matter how small. By listing everything, your budget will be its most accurate which allows you to feel more secure in your property market forecast for resale.
Be Pleasant To The Neighbors
If you purchase a home that is surrounded by other properties, is in the middle of a town or is semi detached, you will need to make a concerted effort to get to know the neighbors. Hopefully, these people will be overjoyed that the derelict home that is a blight on their street has finally got an owner who is willing to make it fit for purpose once again. However, this doesn’t mean that they will be pleased if you are doing noisy excavation or extension work, so it pays to let them know your general plan of works. It shows respect and common courtesy. And it never does any harm to invite the neighbors around once the finished product is complete to treat them to a barbecue out in the new back garden or some nibbles in the new kitchen.
Renovating a property is a fun yet fraught experience. You will either love it or loathe it and do it once or many times over. However, get it right, and you could be topping up your savings pot in no time.