The housing market is tough. In fact home ownership in Australia has been in decline for 3 decades. This is largely to do with the ever rising cost of ownership and the inability for many people to actually get on the property ladder.
One way in which it is still possible is to purchases a fixer upper. This is a property which is in need of refurbishment. They are generally much cheaper than the average finished property.
But, you will need extra funds and time to make a fixer upper into a home. You may even like to call on the services of a residential construction firm to get your renovation project completed on time.
Purchasing a fixer upper can work, providing you consider these points first:
Research
When you purchase a home it is important to have surveys completed. These will tell you if it is structurally sound and if there is anything running under your land.
If you are buying a fixer upper it is also important to know the local planning regulations. This will ensure that you can complete the changes you want to make.
You don’t want to waste money and time arguing with the planning authorities.
Budget
Buying a fixer upper gives you a way onto the property ladder but this does not mean that you can abandon your budgeting skills.
Part of your budget and financial plans will need to be how you will pay for fixing up your fixer upper.
There will probably be some jobs that you cannot do and need professional help with. The key to successfully finishing your fixer upper is to create a budget of what you think everything will cost.
Once you’ve done that take a third of the figure and add it on top; you’ll need it.
Living Space
Living in a renovation project is not easy. There will be mess and turmoil everywhere.
Consider how good you are at coping with this. If the answer is that you’re not then you need t carefully plan the work to ensure there is always a clean space.
Alternatively you can live elsewhere on site or even stay with a friend or family member.
Time
Doing a fixer upper while working is not easy. You will have very limited time in which to get the work done on your home; especially if you have immediate neighbors to consider as well.
You need to think carefully about this point and be realistic. If it is going to take you 10 years to get everything done you need to ask yourself if you are really happy with that or if you should be budgeting for professional help.
Unforeseen Extras
To really make a fixer upper work you need a vision of what the house will be. You also need to accept that there will be changes and extra items to be considered along the way. Accepting this before you start the work will help to ensure you complete the project successfully.
Don’t forget, if you’re doing this just to sell it on then you must stick to plain colors inside.
