A fixer-upper in Winnipeg can be a wise investment. You pay less for the home and invest money to repair it and create the home you desire. Many people love this idea as they are handy with tools and have great ideas. Others want a specific home or location and are willing to fix up the place to reside in that neighbourhood.
There are both advantages and disadvantages to buying any home that needs renovation. It is important to carefully evaluate what needs to be done, the cost involved, and how long it will take. If the home isn't livable while the work is being done, you must pay for another place to live on top of the mortgage for that fixer-upper. If you plan to live there while work is completed, will it be safe to do so?
Strive to find a place with a solid structure. When the structure is stable, you can make upgrades and changes anywhere in a home. If there are problems in this area, you may be in over your head from the start. In addition to the structure, try to find a place offering:
- Electrical elements work correctly, no signs of problems
HVAC systems have been maintained and work properly
- Plumbing systems work correctly, no signs of leaks
Roof is in good to excellent condition
Here are some pros and cons to think about to help you decide if a fixer-upper is right for you or not! Each home is unique with what it offers and what you must change. Some renovations are essential, while others are a want rather than a requirement.
Pros of Buying a Fixer-Upper Home in Winnipeg
The type of home you desire, and a specific location may be out of your budget right now in Winnipeg. It is disappointing when you realise you can't afford the size of home or the location you desire. A fixer-upper can change that for you because the house will be sold for significantly less. It can work in your favour if you move in and fix it up a bit at a time. Be cautious, though, if the necessary repairs are extensive. Because of that status, it may be months or even a year before you can move in.
There is less competition for fixer-upper homes in Winnipeg, which works to your advantage. Don't hesitate to make an offer below the asking price. The seller can accept, decline, or give you a counteroffer. If they accept it, you bought a home at a lower price than you expected, which means more funds you can use for the renovations. If they decline it, you can walk away or offer their asking price. With a counteroffer, they want more than you offered but less than the original listing price. You can accept that or give them another counteroffer!
The unique elements of such homes are desirable, and there may be certain parts of it you immediately fall in love with. You can preserve those and even enhance them along with your renovation plans. You may find a home you like, but the kitchen is too small, or the bathroom isn't what you want. When you fix it up, you can change those layouts and transform the home into one you are happy with.
As you upgrade your home, it increases in value. If you decide to sell it, there can be a vast difference between what you paid for it and how much you get when you sell it. Of course, the money you invested in the upgrades must be subtracted, giving you the actual profit amount.
Nothing beats the satisfaction of owning a home you love inside and out! Changes to make it safe, secure, and precisely what you want only enhance that feeling. Your home should be where you can relax, have plenty of storage, and feel comfortable inviting others to visit with you.
Personalizing your home with details and a choice of materials is a fun way to bring your personality and preferences into the house. Many couples have a great time picking out paint colours, flooring, and other items together. Changing simple things, including lights, can transform the look of your home right before your eyes. They can turn an older home into something modern.
Cons of Buying a Fixer-Upper Home in Winnipeg
If you can do the bulk of the work on your own, it can save you lots of money. The downside is it often takes significantly more time. You may work full-time, and the renovations are on top of that. Are you willing to give up your free time to commit to these upgrades? If you won't be doing the work alone, can you afford a contractor? Will they do a remarkable job? It can be stressful when they take too long, or they don't do the work to your standards.
Do you have the tools to tackle the projects safely? When you evaluate the cost of materials, think about the tools too. Some of them can be expensive, increasing your project's cost. While many tools can be used for multiple projects, it can be difficult if you don't budget for them. Sometimes, you can borrow tools from friends and family. If you only need them for a few projects, go that route. Make sure you return them when you are finished!
As you dig into the problems with a home, you may discover they are more profound than you thought. For example, older homes may have lead paint. This can be dangerous to your health because of the particles entering the airways. It is a good idea to have the home tested to ensure it doesn't have lead paint before you buy it.
If the home has a basement, dampness can indicate serious problems. A professional should also check this before you commit to ownership of the house. There can be dangerous types of mould spores in the home. Asbestos may be in the walls of older homes, contributing to respiratory problems. The money you spend to have a home investigated for such issues is worth it for your safety. If there is lead paint, mould, or asbestos, professionals should remove them. This isn't a DIY project by any means. They require specific handling protocols.
Electrical issues and plumbing issues are complex. It can be dangerous to work on these elements if you don't have the right tools or skills. Hiring a licensed contractor to handle such concerns is best for you. Otherwise, you increase the risk of someone getting hurt or an electrical fire. Burst pipes or leaks can cause an array of expensive problems in your home.
Pests can destroy your home. The biggest culprit tends to be termites. They can cause significant damage to the structure from the inside outward. Empty homes may be infested with rodents. A thorough inspection by a pest control expert is highly recommended. Always put in the contract that the purchase is contingent on the outcome of these inspections.
If the seller won't agree to that, don't move forward with purchasing that home. You won't get the money back you paid for such inspections, but it can save you from going down the wrong path with a fixer-upper in Winnipeg that isn't a solid investment. Ask if you can have professionals complete those inspections before you make an offer on the house. If they have nothing to hide, they shouldn't mind your request.
Base your Decision on Logic and not Emotions
Don't allow your emotions to decide for you. While you may love a particular home, the reality is it may need too much work for you to justify the purchase. Homes with structural damage, electrical issues, or plumbing problems can quickly become a money pit. Obtain a full assessment and report of what the home needs fixed and the cost to determine whether it is a good move. It may be a worthwhile project if you can reasonably buy the house for a low price, fix it up, and live in it or make money renting it.
The cost of the renovations should influence your decision. A new roof is more expensive than a home which needs fresh exterior paint and new kitchen cabinets. Many home repairs can be conquered one at a time. They are relatively easy to execute, and it can be fun to play a role in upgrading your home. If you hire someone to do the work, communicate with them to ensure they are on track with what you want. Verify their skills and ask for references before you hire them.