Buying a fixer-upper in Edmonton can be a great investment strategy for anyone wanting to get into the real estate market or expand their investment portfolio. While fixer-uppers may require more work upfront, they can offer various advantages that make them an excellent option for buyers. In a hot Edmonton real estate market, purchasing a fixer-upper can be a smart move that provides buyers with the potential for long-term financial gain!
Lower purchase price
One benefit of buying a fixer-upper in Edmonton is the potential for a lower purchase price. Fixer-upper homes can be priced lower than move-in-ready homes, allowing buyers to enter the market for a lower initial investment; this can be especially beneficial for first-time homebuyers or those looking to invest in Edmonton real estate with a limited budget. Buyers can save money on the purchase price by purchasing a fixer-upper, allowing them to allocate more funds towards renovations and upgrades that can increase the home’s value in the long run.
One of the biggest appeals to buying a fixer-upper is the opportunity to customize the home to your taste, making it a reflection of you and your family. Selecting flooring, hardware, light fixtures, paint colours, the layout of the home, and any other finishes is an exciting way to create a home that mirrors who you are. If you have specific design preferences, this is a great way to avoid the cookie-cutter homes that occupy a good portion of the Edmonton real estate market. Few things are as rewarding as putting some TLC into the home you will live in for years.
Another benefit of buying a fixer-upper in Edmonton is the opportunity to build equity. Investing in the necessary renovations and upgrades can increase the property’s value over time, allowing homeowners to build home equity, which can be a great long-term investment strategy as it can provide homeowners with a potential source of wealth that can be leveraged in the future. Additionally, building equity in a home can give homeowners a sense of financial stability and security as their investment in the property increases.
Fix, flip, and sell
Fixer-upper homes can have a high return on investment. By purchasing a fixer-upper at a lower price and investing in renovations and upgrades, you can increase the property’s value, giving you a higher return on your investment if you want to sell eventually. Depending on who your target audience is to sell to, you want to make sure your fixer-upper is in a location or neighbourhood that makes the most sense for your expected buyer. By fixing, flipping, and selling your property at a price the market favours, and preferably in a seller’s market, you can expect it to do well in the Edmonton real estate market!
If you are not planning on living in the home, you can rent it out for passive income. As we mentioned earlier, fixer-upper homes can be purchased at a lower price, making them attractive to tenants looking for a bargain. Investing in renovations and upgrades can improve the home’s value, making it more attractive to potential tenants and allowing you to charge higher rent. Having a consistent source of income helps to offset the cost of the mortgage or finance further investments. Buying real estate in Edmonton is not in the cards for everyone, so there will always be people looking to rent homes.
Realty Unleashed can help!
Realty Unleashed believes in helping our clients every single step of the way; we are so sure that you will be satisfied that we give you the ability to cancel your listing with zero cancellation fees any time before accepting an offer to purchase. We pride ourselves on customer satisfaction, allowing you to opt-out. You can learn more about our team here and more about our listing service here. If you’re looking for an Edmonton REALTOR® or a Calgary REALTOR®, we would love to hear from you! Fill out the contact form below, and one of our team members will get back to you shortly.