I'm 19 & I've always been into fixer-upper houses, are they worth looking into?

Question

Are fixer-upper houses worth looking into?

Answer 1

Are you good at construction?  If you are able to do the fixes around the house without a contractor then it could be worth looking in to.  Once you have to hire someone to do work you will probably not get much profit back out of the house(if you are flipping it)-try to do everything you can yourself.  Look in to fixer-uppers, but get them inspected before you decide to buy.  You will want to know what you are getting into beforehand.

Answer 2

Well, yes.

There is the concept of labour equity.

You need to look at the cost to repair and refit against the cost of the property.

The foundation, roof and plumbing are usually the most expensive.

Plumbing and electrical are often close in cost, it depends.

It really depends upon what actually has to be done.

If you can find a shop that makes kitchen cabinets for the housing industry you can save huge money over getting a set installed.

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Sometimes it is surprising what new cabinets and a coat of paint will do for resale value.

Carpet and floor tiles can cover a lot of sins.

You really need to look at the cost of fixing it and count your time as a cost.

I have seen people do lovely renovations and earn less on resale than the cost of the materials, and they were not even pricing their labour into it.

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let me try putting it another way.

If you are looking at a house in an area where most houses are selling at about $250,000 and you see one for $100,000 it might be worth looking at.

You have to accept 100g plus the interest, taxes and closing costs.

Then there are permits and plans unless you are simply repairing instead of adding to or changing the structure.

Then there is insurance.

You need to count the carrying cost and the loss of interest from your down payment.

Then there is the cost of selling it again. Lawyers and real estate agents will want their 10%.

So if you can keep that down you likely look at $150,000 to buy and sell.

This gives you a $100,00 window.

Depending on just how bad it is you might make a decent return.

If it costs you $50,000 in material (and tradesmen's wages) and takes you a year to do then you made $50,000 for your time.

Not a great yearly salary, but not bad either.

Answer 3

no.

Answer 4

yes if the structraly sound always check the history of the house if possible and and get a surveyors report before anything.and check the surroundindg area for prices on houses local to the dwelling.but always look before you buy

Answer 5

Yes they are worth it some houses need more work than others and others just need to be knocked down buying them and fixing them is a gamble but just fixing them is cool Good Luck