Is fixing up a house worth it? Absolutely Yes.
The trick is to find the right home at the right price. If you really want an amazing return on a fixer upper, look for a home that is under $150,000. Not that it isn’t worth improving a home above $200,000 isn’t worth it, it’s just that you don’t get as much of a return on your investment. Let’s say you spent $50,000 on a home that is valued at $200,000 and it increases to $300,000.
You really only got $50,000 extra out of that investment since you already spent that much. But you spend the same amount on a 150k home, and it increases to $300,000, then you got an extra 100k out of it. There are some things you should consider however when looking for a project house.
Location, Location, Location
The location of your new project home is essential as to whether or not it is worth fixing it up. It might seem like a decent price to buy to get a massive return on your investment, but what are the surrounding areas like? Is it in a good neighborhood? A cheap home could be a sign that it is in a bad neighborhood, making fixing it up potentially hazardous if there really is a lot of crime.
Is it located in an area where the ground is made up of expansive clay? That particular soil makes it unattractive as it absorbs matter even easier than normal soil, causing it to expand and contract rapidly and suddenly you have a sinking home. Another increasing problem is if your home is in a flood zone. If you are constantly bombarded with rain and heavy flooding, it’s not really worth fixing up the home since you can expect to fix it again within the next year or two.
Is It In The Right Condition?
If a house is sinking, it’s probably not worth the investment to fix it up, unless you’re planning on permanently living there. You should also have a new project home inspected before you buy it, see what structural problems it might have. If the foundation is sound and the supporting corners are good and the roof is ok, it might be worth getting especially if you plan on expanding the home. You’re demolishing the sides to make a new addition, so why worry about what condition they are in?
Call one of our expert home builders today if you are interested in fixing up a house! Start investing in a new project home today!