The thiought of purchasing an old property and renovating it into your dream home or a steady source of income is appealing to a lot of folks. But that exitement may come with many problems.
Before diving in, you should know what you're getting into. Before investing in a property to restore, consider whether it is the right home for you and what it will take to revamp.
What is the best property for you?
Consider the following:
Pros and cons. A lower sales price, solid potential for resale profit, and a sense of satisfaction are possible with many properties. However, there may also exist several invisible costs needed when buying a house that needs to be renovated.
Patience. Depending on the scale of the renovation, restoration can take from a month to a year to finish. Remember how the impact of time may affect your life the life of your family. If this does not fit with your lifestyle, you might consider a different type of property.
Money. Renovations can be quite costly. If you're not going to have much money left for repeairs after your down payment and closing expenses, you might want a home you can live in while it is being renovated. No matter what you decide, bear in mind that there will be extra cost no matter how carefully you plan.
Considerations when searching
So you're ready to start looking for a property. Keep these pointers in mind:
Location. This is the golden rule of real estate and also applies to restoration projects. Do your homework. Check average prices for homes and schools in the region. Walk around the neighborhood to see if the houses are well maintained. Investing in the worst looking house in the best neighborhood can be a great option.
Condition. This can vary quite a bit, from needing cosmetic repairs to a complete house rehab. If you want to reduce renovation expenses, try to find a home with the following: a strong roof and foundation (you may want to consult with a professional foundation contractor), natural light, a desirable layout, quality construction, and a cohesive design.
Design. A lot of older properties are divided into multiple rooms. That type of design might not work for you and your family. While you can take down walls and redistribute spaces, this can be costly or impractical. Remember this when you think about your budget.
Setting. Search for homes that have similar square footage and number of bedrooms and bathrooms you desire. While it is certainly possible to add them during renovation, the costs can add up fast, especially if you plan to add an addition to the house.
Remodeling and repair considerations
First off, make a budget. A professional contractor can help you with this.
Make a list of minor renovations that may be needed. These may include:
Patch and paint walls
Refinish flooring
Laying tile or carpet
Installing lights and switches
Fix broken windows
Installing new kitchen cabinets or restoring the current ones
Replace doors
Paint the exterior
Also, make a list of major renovations that are needed. These may include:
Replace Heating, Ventilation and Air Conditioning (HVAC) systems or adding central air
Fixing the foundation
Replace the roof
Install new pipes, sewer, or wiring
Replace windows
Kitchen and bathroom remodeling projects
Build garages and other additions
Final thought
Consider the look of nearby houses on the block. If most have cheaper finishes, it's likely not very wise to spend money on granite counters, copper fixtures in bathrooms, or marble floors. Your home restoration should be in line with - or slightly above - the standards of other properties in your neighborhood.
Purchasing a home is one of the most important decisions you will make. And though it may feel overwhelming, a home to revamp can be a great investment.
Just make sure to do your research, talk to trusted professionals, and make a smart and informed decision.
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About the Author
VJ Pezzimenti Joined: December 16th, 2020 Articles Posted: 2
