If you are tempted to take a foray into the world of fixer uppers, consider how you are going to stay on budget so that your new pad doesn’t turn into a money pit. All too often, you may become seduced by a vast property that is virtually derelict. You have the vision to transform it into your dream home, but the chances are that you have no idea how much it will cost to achieve. Purchasing a fixer upper can be a money maker. You can outperform the market by revamping a neglected home, spending money wisely, and generating a large amount of equity within your bricks and mortar.
Having an asset means that you are set up for the future. While many people choose to have their savings in a bank account, you can release yours to work more aggressively for you while creating your dream home at the same time. Use some of your savings and the profit from your house sale to fund a deposit on your fixer upper and a scheme of works. Take a look at these fixer upper property hacks to save you cash in the short term and prepare for you twilight years in the long term.
Budget
When you have found a fixer upper that you are keen on, arrange a series of viewings to help you budget for your renovation plans. Go room by room, and consider every single job that needs to be completed, from roof replacement to hinge additions to a door. By being comprehensive in your analysis of your renovations, you will construct an accurate budget for your fixer upper proposals. Budgeting is crucial to ensure that you don’t slip into debt and to make sure that you don’t end up with a home worth less than what you have spent on it.
Budget by using a spreadsheet. List every job and formulate a total for your proposed scheme of works. Then, add ten per cent to your budget to have as a contingency. While you might not use it, you need to have it on hand as a safety net. You must stick to your budget religiously. If you find the purse strings getting out of control, you must be ruthless and make compromises as and when they are needed. A smaller extension may be necessary to stop you from falling into debt.
Repair Rather Than Replace
On occasion, you may find that your fixer upper comes with a whole host of rubbish in the interior. It’s not unheard of for old clothes, moth-eaten fabrics and rotten wooden furniture to be found within a fixer upper. While these need to be thrown away, you may also be fortunate enough to find things worthy of keeping. The kitchen of your fixer upper may have appliances that can be saved. This can save you a small fortune on white goods. You can get started on those repairs very quickly by picking up spare parts cheaply on the Internet and downloading manuals from manufacturer’s sites. Fixing your own refrigerator rather than buying a new one or hiring a tradesperson will save you money.
You may find that the kitchen units are structurally sound even though the door fronts are very old school. You can create a more modern aesthetic by swapping the doors for a high gloss finish or a shaker style glazed front depending on the vibe you are after.
Priorities
Your main priority must be to get your fixer upper structurally secure and safe to enter. Many fixer uppers haven’t been inhabited for decades, so have fallen into disrepair. You need to get a surveyor around to check for subsidence, heave, and any sign of house movement. It’s not the end of the world if subsidence is diagnosed, but you will need to factor in the cost of underpinning your home to make it habitable.
Next, check your utilities. Your home must have running water, needs to have gas and electricity connected, and needs to have a working boiler. The chances are that your new humble abode will need rewiring and a new boiler. Take this opportunity to explore more sustainable ways of producing your own energy. Many people now choose to install solar panels on their homes as a way of generating their own electricity. This saves you cash long term. Any extra energy that you generate can be sold back to the grid, meaning that you could, in fact, make some money.
The pipework in your home must be checked by a plumber before you do any major renovations in the kitchen or the bathroom. There’s nothing worse than installing a boutique bathroom style four piece suite, only to find that the shower blocks up and the toilet won’t flush. This could result in a costly process of reinstalling after a pipe check. Get your pipes cleaned so that they are fit for purpose for modern living.
Exterior
Don’t neglect the exterior of your property by going all out on the interior of your new pad. When you concentrate on the decor of your home, you’ll be keen to get the living room, the kitchen, and the bedrooms reflecting your personality. You might go for the minimalist look, or you might prefer a more traditional retro vibe.
Don’t dedicate your decor budget entirely to the interior of your home and leave the faade of your dwelling looking shoddy. You want your new dream home to ooze curb appeal. Check the render and repoint any bricks that have come loose. Paint your render white, clean the fascias of your windows and replace any slipped roof tiles. Power wash your driveway and sort out any jungle like gardens outside your pad. Only then will you have a complete home that is fit for your family.
If you are considering a fixer upper as your next home, follow this guide to ensure that you make wise financial decisions.
