Real Estate Investor Magazine South Africa September 2015 | Page 32

STRATEGIES

Purchasing a

Fixer-Upper
Tips for purchasing property in need of repair
BY ADRIAN GOSLETT

B

uying a home that is in need of attention can be
a highly beneficial investment, however, this is
dependent on whether the purchaser takes the
necessary precautions and follows the right procedures.
Regardless of the kind of property that the buyer
is choosing to invest in, it is important that they do
the required research and lay down the groundwork
before committing themselves to the purchase. This
is especially important when looking for homes that
would be considered as a fixer-upper as the buyer
will need to pay additional money onto the property
to renovate it. Knowing what is a good buy and what

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SEPTEMBER 2015 SA Real Estate Investor

should be steered clear of is a key aspect to success
when purchasing a fixer-upper property
There are several advantages to purchasing a home
that needs renovation. For many investors who have
the capital to spend on renovating, purchasing a home
in need of attention is a way to secure a higher profit
margin when they sell the property at a later stage,
provided of course that they are savvy with how much
they spend fixing the property.
He notes that another advantage is that there is
often less competition in the market for these kinds of
homes, which means that they generally sell for lower
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