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The Financial Gain of Fixer Uppers
Over the years, HGTV shows have sparked interest in fixer uppers for many across the country. Back in 2013, the show that started it all, Fixer Upper, first aired. Soon after the air date, the king and queen of flipping rundown houses and turning them into aesthetically pleasing properties, Chip and Joanna Gaines, inspired others to do the same. In theory, it sounds like a great investment to buy an affordable property and DIY it to perfection; however, it is important to weigh the pros and cons before you make the commitment. It can be the difference between landing yourself in a financial fiasco or making a worthwhile investment.
There are three big question you should ask yourself before making a move on the fixer upper you’ve been eyeing. First, ask yourself if you have the time. As they say, “time is money.” Home renovations may only appear to us in 30-minute episodes with a claimed 3-week deadline, but you have to remember that these shows are bringing in teams of people who flip houses for a living. Meaning, they have all the time in the world. For many who purchase a fixer upper, that decision is being made with the intention of using their own skills to renovate the property. While this is definitely a money saver, it is not a time saver. Make sure you have a plan to carve out a certain amount of time each week to work on your home. Additionally, don’t worry if you don’t meet your personal deadline. These things take time, but the results are often worth it.
So, you have the time? What about the money? We, of course, know that one of the major benefits to purchasing a fixer upper is a lower cost, but make sure your renovation plans also fall into your budget to make the flip worth your wallet. It can be all too easy to forget the price tag and dive headfirst into the most grandiose renovation plans you can think of. When house hunting, make mental notes of the repairs that would need to be done and compare the price of the house to the amount that you would estimate to spend on those repairs. If you prioritize these costs, you can come out on top in the long run.
Lastly, make sure you understand the importance of flexibility when making the commitment to flip a house. Having an idea of the price range you will be working with is one thing, but once you get to work, unwelcomed surprises often pop up. Do your best to negate these setbacks by inspecting the property beforehand. Even still, have additional funds on standby if issues do arise. If you are flexible with your finances and your time, you can turn that fixer upper into a forever home or a profitable investment.