Purchasing a fixer-upper has grown in popularity over recent years, with many buyers and investors looking to make a profit out of them.
Fixer-upper properties can often be bought at a considerably lower price than smarter properties, allowing for a large profit margin, says chief executive of Greeff Christie’s International Real Estate Mike Greeff.
He urges buyers to recognise the “undeniable opportunity” of purchasing such a property.
“Fixer-uppers allow homeowners to explore various options with the home - if not almost instantly, then perhaps over a period of time.
“Additionally, the quality often found in features of fixer-upper properties is usually higher, and more often than not bespoke, as opposed to the styling of features in newer properties that tend to be fairly generic.”
Greeff explains some of the advantages of purchasing properties in need of TLC:
* Purchasing the property at a good price: Fixer-upper properties are not high on the list of desirability and, so can, in most cases, be bought at a “fantastic price” from an agency and a willing seller.
“Sellers of fixer-upper properties are aware their properties may be a difficult sell and will take this into consideration when deciding on a selling price for their home,” Greeff says.
“Those looking to get into the market as first-time buyers could benefit from the pricing of fixer-upper properties.”
* Freedom to be creative: Putting a creative spin on things allows homeowners to bring their vision to life, he adds.
If the property does not require major reworking, cosmetic changes may be the way forward.
“Simple changes, such as interior decorating and lighting, could be all that is needed to make the transformation of your property a success. If you have a certain colour scheme in mind, or would like to use one of your favourite colours, this would be the perfect place to live out your colour-scheme dreams.”
Greeff says owners are also free to reassign rooms to serve different purposes to the original ones. This could mean making former living areas bedrooms or extending kitchens by breaking down walls.
“The options are limitless and entirely up to you.”
* You can upgrade the property and “flip” it for a tidy profit: Purchasing a property for a potential upgrade is not always about using it as your residence - you might want to sell it.
Greeff says flipping properties has become popular in recent years, with shows such as Flip or Flop and Fixer Upper turning into television sensations.
He explains flipping a property simply means buying one (in most cases a fixer-upper) and renovating it for resale, making a considerable profit.
“Whatever you may choose to do with the fixer-upper you purchase, the opportunities are endless and can be achieved with just a little bit of effort, imagination and innovation.”
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