Buying a fixer-upper, a property that requires renovations or repairs, can be a good investment or a financial disaster, depending on your goals and your ability to handle the challenges of such a property. Here are some pros and cons to consider when deciding whether buying a fixer-upper in Calgary is right for you!
You can turn it into a profit.
Buying a fixer-upper in Calgary means adding value to the property beyond what you paid for it through renovations, making it a potentially profitable investment. When you buy a fixer-upper, you have the opportunity to make improvements and upgrades to the property, such as fixing structural issues, updating appliances and fixtures, or adding a new room or feature. These renovations can increase the property’s overall value beyond what you paid for it, potentially allowing you to make a profit if you decide to sell the property in the future. For example, if you buy a fixer-upper for $200,000 and invest $50,000 in renovations, the property’s value could increase to $300,000 or more, giving you a significant return on your investment. However, it’s important to note that not all renovations will add value to the property, so it’s important to carefully consider which renovations to undertake and ensure that they align with the local Calgary real estate market and the targeted buyers’ preferences.
You can customize it to your taste.
Another benefit of buying a fixer-upper in Calgary is the potential to customize the property to your specific preferences and needs. When you buy a move-in-ready home, it’s already designed and decorated according to the previous owner’s tastes and preferences, which may not align with yours. However, with a fixer-upper, you have the ability to create a home that suits your style and needs. You can choose the paint colours, flooring, fixtures, and finishes you prefer and design the layout to meet your specific needs and desires; this can create a sense of pride and satisfaction in homeownership as you have created a home that truly reflects your personality and lifestyle.
Fixer-uppers are priced lower.
Compared to move-in-ready homes, fixer-uppers are much more affordable, allowing you to save money on the initial purchase. Since the property requires renovations or repairs, the seller may be willing to offer a lower price than they would for a move-in-ready home, which can be particularly beneficial for buyers with a limited budget or who want to invest in a property in a more expensive area. Additionally, since you are paying a lower price for the property, you may have room in your budget to invest in the renovations and upgrades you want to make, allowing you to create the home of your dreams without breaking the bank.
Unexpected costs + complications.
One con of buying a fixer-upper in Calgary is the potential for unexpected costs and complications that can arise during the renovation process. Renovations can be expensive, and when you buy a fixer-upper, you may uncover additional issues with the property that weren’t apparent during the initial inspection. For example, you may discover structural damage, plumbing or electrical issues, or other problems that require extensive repairs. These unexpected costs can quickly add up and significantly impact your budget and timeline for completing the renovations. Also, renovations can be time-consuming and disruptive to your daily life, as you may need to live in the home during the renovation process or find alternative accommodations. Overall, it’s essential to carefully evaluate the potential risks and challenges of buying a fixer-upper before purchasing.
Unforeseen delays + disruptions.
Another con of buying a fixer-upper in Calgary is that the renovation process can be unpredictable and take longer than expected. Even with careful planning and budgeting, unforeseen circumstances such as inclement weather, contractor delays, or supply chain disruptions can cause delays in the renovation process, which can be frustrating if you’re on a tight timeline or have already committed to a move-in date. Additionally, living in a home under renovation can disrupt your daily life, as you may need to deal with noise, dust, and other inconveniences. It’s important to be prepared for the potential challenges and setbacks during the renovation process and to have a contingency plan to ensure you can manage the process as smoothly as possible.
Realty Unleashed can help you find your home!
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, meaning giving you the freedom 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 real estate agent or a Calgary real estate agent, we would love to hear from you! Fill out the contact form below, and we will get back to you.