3 comments | Wednesday, March 7, 2012
Property Investment
There are several types of properties today. However, most homeowners are undecided in terms of purchasing a new property or a fixer-upper property. Other than finding an agent and a lender, you need to decide on the type of property you want to get. Some find it better to purchase a new property. However, there are also those who find it more convenient to purchase a fixer-upper home.
The decision relies on you and your circumstances. Consider several factors before you decide.
YOUR REASON TO BUY: People don’t just buy houses to live in them. Many people also look to buy investment properties, or homes from which they wish to eventually profit. One of the most profitable ways to do that is to purchase a fixer-upper–a house that is in need of repair.
Fixer-Upper Strategy
Fixer-upper houses are houses that need a little work to increase in value. Real estate investors that purchase fixer-uppers tend to get houses that are not in condemned status or require a major repair, such as replacing an entire house’s worth of plumbing. Instead, they look for homes that are located in nice areas but need aesthetic upgrades. Or they may purchase fixer-uppers that are nearby expanding neighborhoods, hoping to repair the home by the time the property values rise. This practice is referred to as flipping a house. Fixer-uppers can become more profitable if the homes can be restored within a short amount of time relative to the purchase.
ADVANTAGES: to buying a fixer-upper. First, it is inexpensive. This means that you can save a lot. This is great if you are on a tight budget. Next, you can personalize your property by renovating it yourself. You should be prepared since most of these properties need a lot of work and you might not be able to move in right away unless you make the essential repairs immediately.
COSTS: Decide how much you will spend on repairs and renovations. A home inspection prior to purchase will give you some ideas of how to proceed. Talk the inspectors & bring a contractor to your meeting. A good contractor can help assess how much you need to spend on the property for the needed repairs.
If you are a contractor, then you could do most of the work yourself, and save even more money since you won’t have to hire contractors to work on the fixer-upper. Keep track of your time and expenses to the finish.
For a list of latest foreclosures and how to buy low and sell high, contact me at you’re earliest. I offer homebuyer seminars every Saturday & by appointment. Pick up free materials and information to assist with your decision-making.
I specialize in first time buyers, investor properties, property management, & second home purchases. Contact me for your FREE consultation today. Experience guaranteed results & satisfaction.