A home is one of the biggest investments that you will ever make. And in some places, buying a house will cost you more. The average cost of a home in Guelph Ontario area is over $570,000, which is a significant chunk of money. And when you consider the fact that you would need at least 20% as deposit to avoid mortgage insurance, then you realize just how expensive homeownership can be. But there is hope.
Consider a fixer-upper. Such homes do require some repairs before they can be livable, which may seem inconvenient to you as a buyer. But fixer upper homes for sale offer tremendous benefits that are worth considering:
1. Fixer-upper homes are cheaper
Most home buyers want turn-key homes that are ready to move into. That means they are expensive because you don’t have to do any work on them. For the privilege of moving into a home that doesn’t need any work, you would need to pay more money. But what if you have a limited budget?
Fixer-uppers need quite a bit of work before they are presentable and comfortable to live in. For this reason, they are cheaper. Sellers are aware of the work that is required and the monetary investment that must be made to bring the homes up to par. So they price them accordingly. You need to consider such homes if you have less money to invest. The amount of money you would pay would be way less than you would spend on a turn-key home.
2. Fixer-upper homes have lower competition
Most people would rather pay more money than deal with the headaches of renovating a fixer-upper. Because of that, you are likely to have less competition for the home that you want than if you were to make an offer on a turn-key home. Your chance of getting a home in your ideal location is, therefore, much higher. Remember, you can change the home you are in, but you cannot change the location features. So, if you want to be a homeowner, turn to a fixer-upper home to achieve your goal.
3. Fixer-upper homes offer you a chance for personalization
It is difficult to justify spending money renovating a turn-key home that already looks good and is comfortable to live in. That’s not the case with a fixer-upper home. Because such homes need repairs anyway, you have the opportunity to make design changes to suit your needs and preferences. And because a fixer-upper is cheaper, you may have room in the budget to make those changes at your own pace.
4. Fixer-upper homes provide a higher ROI
Houses appreciate over time. But it will be a while before you build considerable equity into your home if you spent a lot of money buying it. That is not the case with a fixer-upper. The homes are usually sold below the market price.
But once you make repairs, the value of them home immediately increases because it is now more desirable to live in. When you combine that “sweat equity” with appreciation over time, a fixer upper home will provide a much higher return-on-investment if you choose to sell or rent it.
The demand for homes in the Guelph Ontario area has been increasing. And the competition for those properties has also increased. The prices are quite high as a result. Instead of letting yourself get priced out of the market, you should pursue fixer-uppers as an avenue to homeownership. Your home may require repairs, but in the end, you will gain a valuable home in your dream neighborhood at a much lower price than most home buyers. So, don’t be afraid to ask your realtors to show you those homes that have some damage.