There are many merits and demerits of buying a fixer upper. You must weigh the pros and cons to make an informed decision. Invest only if you stand to benefit and if you are prepared to handle the challenges. Before we explore some obvious challenges, let us check out the pros and cons of buying a fixer-upper or renovators-dream.
Renovating has its share of advantages. From enhancing the aesthetics and curb appeal of a property to enhancing utility and increasing the resale value, renovation has its rewards. But it is not a very economic choice. Renovations call for enormous effort, relentless calculations and unwavering commitment. You need to be patient, even when you are writing cheques. You must be dedicated and should have a foolproof plan.
You may consider renovating yourself, which will be an uphill task. You can hire professionals and that would cost you money. Both options have serious benefits and challenges. The purpose of renovation must be well defined. You cannot have multiple purposes because every choice will dictate a certain decision. Everything from the tiniest fixtures to the overall plan of renovation will depend on the purpose.
The budget will be a major factor, so would be time and research. You will also need to depend a lot on professionals you are hiring and your family for support. The whole process of renovation can be quite tedious but it could also be very rewarding. You could spend a lot of time on research and you must set aside substantial time to keep track of progress but you would also get to use the investment for substantial deductions while filing taxes.
The definite purpose of buying a fixer upper or renovating a property will determine if it is a wise choice. You must be able to capitalize upon your investment. However, none of that changes a few realities you would have to deal with. The renovation project is a daunting challenge. Things will get dirty, you would have to deal with a certain degree of unpredictability, costs may shoot through the upper limit of your budget, your plans can be in disarray, you would lose sleep and your lifestyle will be affected substantively. Be prepared for odd developments as renovation projects seldom tread the predicted path. Schedules may go haywire, things may fall out of place and there may be some rather unpleasant surprises.