The thought of purchasing a second home that needs a little TLC to then renovate and sell on at a profit has become all the more alluring since the emergence of TV shows showing off just how seemingly simple it is. These unrealistic shows tend to show people who have got lucky at auction, have been fortunate with the property market or have never encountered any unforeseen issues. The reality is different.
With a fixer-upper, you invest your hard earned cash and then have to dedicate much of your time outside of your full-time job project managing the renovation. Does this sound like too much hard work?
As with any sort of investment, you need to purchase at the right price. However, with property, you also need to buy in the right location. Those up and coming areas could have been labelled this way for a decade or more. They may be a crime hotspot, have poor schools, and lack transport links. Just because a dwelling is cheap doesn’t make it a good investment. Instead, stick to those more well-established areas. Check the housing market histories of locations and if an area has seen property prices rise for the past five years, the chances are that this is a good area to invest in.
When renovating a property, it’s very hard not to become seduced by your own pad. You will inevitably grow attached to it, but it’s vital that you see it as a business and nothing more. Don’t put a ridiculously expensive granite quartz worktop in the kitchen just because you’ve always wanted one. You won’t be using it! Spend your money wisely and keep things plain and neutral. While white walls and oatmeal carpets and laminate are a little boring for your tastes, it presents the perfect blank canvas for any potential buyer to make his or her mark.
Alternatives To Buying A Fixer Upper
If your heart is set on investing in property, but a fixer up seems a little too much hard work for you, why not consider purchasing a new home off plan. Developments like the one at Wyndham Ridge haven’t even been built yet, but they are still for sale. Buying with no structure in place means you can secure a property at a bargain price. When it is completed, you can then sell on the finished product for a profit.
Alternatively, you may wish to look at vacation rentals or commercial property as an investment option. Commercial properties are always in demand and make a secure long term investment with less risk than residential properties. Vacation rentals, while seasonal can charge lucrative rents in the high season. The most important aspect of any property purchase is location, so make sure you get this right.
Property is always seen as the safest investment for amateurs. Check out the bricks and mortar in your area, do your research and ensure that you have the time and finances to dedicate to a fixer-upper if this is the route you choose to take.