When it comes to property, location is an important deciding factor that not only determines...
Property Managers in Hobart weigh-up fixer-uppers as an investment
Everyone loves a bargain, but we have all had the experience of one that turns out to be anything but a bargain. It ends-up costing much more than if we had paid the full price for a decent item in the first place. Property Managers in Hobart know how to spot a real good deal when it comes to investment property.
There are fixer-upper success stories second to none. What’s the secret? First and foremost, don’t rush into it and buy a house that needs major renovation, if you have not done your homework. It is not something one does on a whim.
Remember that usually, the reason it appears to be a bargain is because it needs fixing – a lot of fixing. That’s fine if you are the DIY kind of person and love a challenge. In that case, the project could be just what you need to keep you occupied in your spare time. But how much fixing-up is needed? Is it only cosmetic, something new carpets and a coat of paint will fix, or is the plumbing in need of repair and the foundations crumbling?
Call in the experts
The only way you will know for sure is to get an expert’s opinion. Get an independent home inspector to evaluate the structure, electrical wiring, foundations, roof and the unseen fixing to be done. Walk through the house with the inspector, ask questions, and learn. This way you will get much more information than from an inspector recommended by the real estate agent selling the property.
Most tenants want to move into a ‘move in ready’ place with the latest fittings and clean smelling carpets. To renovate a place to that kind of standard might mean a new roof, kitchen, carpets, windows etc. These are all do-able, but can they be done within a reasonable budget and time frame? It usually takes longer than you thought, and can put a great deal of strain on you and your relationships.
Are you up for doing it yourself
As an investor you want tenants in there as soon as possible. You may think that to benefit from the investment you should do the renovation work yourself, or oversee it yourself. Or you may feel that paying through your neck to have it done stops your bargain buy from being one. Ask yourself if you have the know-how to do this, and if you have the time.
The longer it takes the more revenue you lose out on. To get a loan to buy a fixer-upper could also be problematic, so investors either have to be ready with hard cash, or borrow it from high interest firms that are prepared to take the risk. Usually once the renovations are complete, a financial institution is more ready to approve a normal mortgage bond. This is another reason to get the renovations done ASAP.
Baxton Property Management in Hobart has seen many rough diamonds being transformed, so they know it is very possible to invest in an old home, give it a facelift, and earn good rental from it. It is just a project to be taken on with caution and not without expert opinion. For more information on services or expertise, visit the Baxton website.
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We hope you enjoyed this article
The information contained in this article is based on the authors opinion only and is of a general nature which is not indicative of future results or events and does not consider your personal situation or particular needs. Professional advice should always be sought relevant to your circumstances.
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