There are lot of differences between purchasing a new property and buying a fixer upper home in Toronto. There are few things to look out before buying.
What is a fixer-upper home?
It requires re-modeling, repairs, renovation. They are considered to be a great investment property as earning profit out of it is quite easy. These homes are purchased at a low cost and sold at a higher price.
Why these homes are preferred?
They are said to be foreclosed homes, the savings you earn while purchasing this home can be used in repair work, purchasing new properties. The discounted price is the highlighting feature. You can find property listings in our site offering at affordable price.
- Less competition: As there are only few buyers interested to buy these kinds of homes. Negotiation can be done. Those who are willing to do repair and renovation work can buy Fixer-upper homes. Once you complete all the work, it gives a new- look and its ready for the sale.
- Resale value: The investors earn equity and add value to the property. In the future, the property can be sold at a good resale value.
- Learn to repair: The buyers gain enormous amount of knowledge while doing repairs. They learn how to maintain a home, remodeling. It inculcates an urge in the investors mind buying a fixer upper home in Toronto more such homes to learn more on repairing activities.
- Happiness: Once the home is ready for occupation, if the buyer has decided to occupy the place. He gets an immense satisfaction for all the work he had done.
Things to look out while buying a fixer upper home in Toronto
It plays a major role as buyers prefer a neighborhood with all amenities.
- Layout and condition
The layout should have a strong foundation, basic skeleton. It is better when repair work is minimal. Spending large amount on repairs in case of bad skeleton will not fetch you much profit in the future. The condition of the home has to be checked as the investors cannot keep on spending on repair work. Hire agents, contractors and few professionals who can give you an idea about the estimate of the repair cost.
There are two types of fixes
Smaller fixes: These fixes improve marketability of the property and add a visual appeal.
- Painting the walls with a new coat of paint.
- Replacing windows, doors
- Energy efficient home supplies
- Kitchen updating : adding cabinets, shelves
- Lighting and improving outdoor
Bigger fixes: Requires professionals to fix these issues
- changing plumbing lines
- adding HVAC systems
- electrical lines changing
- entire kitchen remodeling
Home inspection: Hire home inspectors to do this work. Roof certified home is an essential criterion to be verified, if it doesn’t pass the inspection, avoid buying the property.
Pest inspection: Homes damaged by insects or termites can cost you more. Avoid such homes and inspect thoroughly.
Consider these things before purchasing a fixer upper home.