So… you decided you want to buy a house and are considering a Fixer Upper. You may or may not be a first time home buyer, may have limited funds so naturally you may think a Fixer Upper is the answer; but it may not be. We’re not saying this can be a bad idea but we way to make sure you go into it with your eyes open and ask realistic questions. We also don’t want you wasting your time so before you go through all that work of finding that dream fixer upper, you may want to first consider the cost of repairs. Even if it is a DIY Project, once you tally up all the material, it can be a hefty cost, items like paint, trim, supplies, drywall, tile, etc. can really add up. Remember to factor in the hidden costs of your time and energy so count yourself for labour costs. You may not only want to consider the impact on your pocketbook, but any additional stress on you and your family, if it will affect your income or job or affect your health. Renovations can challenge the strongest of people and if renovating a fixer upper was easy, everybody would be doing it, the house is at a reduced cost for a good reason. Also check out this may affect your status of obtaining a mortgage with your Financial Institution, so be sure to talk to your Mortgage Broker or Financial Institution on possible issues. Don’t forget CompareMyRates.ca has some great free online mortgage calculators that can assist you in gathering some of the financial data.
Let’s give you some questions to consider.
- Realistically, how much will this cost and is the cost of the house, plus cost for renovation, worth it?
- If it’s a DIY, can you live with not having things done right away and living with the needed repairs? DIY Renovations can take a considerable amount of time.
- Do you know of good contractors if deciding to hire someone to do the work? Call around for some rough estimates.
- How handy are you and do you have willing friends and family?
- Are there move in ready homes at the same price after you factor in costs
There are people who would rather have a fixer upper and enjoy renovating and are excited about getting a deal; make sure you’re one of those people, and one suggestion, watch the movie The Money Pit first!
Check back again next week for Part Two with information about Financing a Fixer Upper.