Top 5 Reasons to Invest in a Fixer-Upper

If you’re thinking about buying a fixer-upper, perhaps inspired because it’s something that “Chip and JoJo” or one of the many other reality-show house-flipper TV stars have done, there are plenty of reasons to make this investment.

First, you should do your research, starting with the steps to buy a house.It’s important to understand all of the costs that come with your purchase, not just the sales price, and everything about the inspection, as well as how to be prepared for the future over both the short- and the long-term. That said, this is why you should go for it.

The Sweat Equity

You’ve probably heard the term “sweat equity” which basically means a lot of hard work. You’ll have to put the time and effort in, but the renovations you do will add value to the home. That means by fixing things yourself, you’ll be building equity literally through your sweat.

While you can also build it by paying down your mortgage through monthly payments, that takes years as initially they mostly cover the interest. Going the DIY route is a much quicker way to build up equity in a fixer-upper home.

Profit for Flippers

After renovating the fixer-upper, if you intend to sell, something referred to as “flipping” a home, you may earn a big profit. While profits for flippers have been decreasing, it can still be lucrative when done right, with the median gross-flipping profit in the fourth quarter of 2020 at $70,500, or a typical 40 percent return on investment. 

You Can Make It Your Own

If you find yourself saying things like “if only I could knock down this one wall,” with a dream to live in a place where everything is done to your specific tastes, investing in a fixer-upper is a great idea. While you could have a brand-new home built from the ground up, that’s usually a lot more expensive. As a fixer-upper at least has the bones and may even be liveable, you might be able to move in before you start transforming it. 

One caveat, if you do plan on working on it after moving in, be sure to talk with contractors about what you can expect when the renovations start. Perhaps there’s a way to divide up the work so you at least have a more tranquil corner away from the commotion.

You Love DIY Projects

If you love to learn and take on all sorts of DIY projects that bring challenges and the opportunity to enhance your skills, investing in a fixer-upper will definitely provide that. Be aware that some aspects are likely to require a professional, such as electric work. And you may want to hire an engineer to determine which walls can be removed safely.

Even if you aren’t doing all the remodeling with your own hands, overseeing it is still work. Plus that sweat equity equals bragging rights. Getting compliments on how incredible your kitchen looks, for example, and being able to say you did it yourself, is pretty sweet.

You’re Into Historic Character

If you’re turned off by cookie-cutter homes and find historic character a lot more appealing, fixer-uppers can often provide that. Usually, they’re older homes with a rich history and plenty of personalities. Plus, you never know what you’ll find when you’re stripping off that old wallpaper. 

Ulani Uriah

Umar Nisar was born and raised in the busy city of Abbottabad. As a journalist, Umar Nisar has contributed to many online publications including PAK Today and the Huffing Post. In regards to academics, Umar Nisar earned a degree in business from the Abbottabad UST, Havelian. Umar Nisar follows the money and covers all aspects of emerging tech here at The Hear Up.

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