Goslett gives investors looking for the ideal fixerupper some pointers to consider.
1. Location
No matter what kind of property a buyer is interested
in, one aspect that will always need to be considered
is location. A propert y’s location will largely
determine its value once it has been fixed up and put
on the market. If the house is in need of repair and
so is the neighbourhood, there may be a risk of overcapitalising and having a nice house in a bad area.
From an investment perspective, it is always better
to purchase property in a desirable area that is close
to a range of amenities – the rule is to rather buy the
worst house in the best suburb than the best house in
a suburb which is not well located.
2. Composition
Generally the most sought after type of home in a
particular area is the one to choose. If most of the
buyers in an area are looking for a three-bedroom
home, then don’t buy a two-bedroom one, or if
sectional title or estate properties are the way to go,
choose an investment home where demand is strong.
3. Design
The general layout and design of the fixer-upper
home needs to work. Moving walls or rectifying
a home that has been designed badly can be very
expensive. The layout of the home should flow and be
practical. For example, if a buyer has small children
they would not want bedrooms to be on opposite
sides of the property.
4. Condition
It is important to consider the overall condition of
the home to decide whether the renovations are
manageable or require major changes. If too much
needs to be done to make the house liveable, it
may be worthwhile looking elsewhere. Aesthetic
improvements are typically less costly and take less
time than other modifications.
www.reimag.co.za
LESS COSTLY EASY FIXES
1
Filling small cracks, repainting both
interior and exterior.
2
Sanding and refinishing wooden floors,
tiling or laying down new carpets.
3
Updating lighting with contemporary
styles.
4
Refurbishing or replacing skirting
boards.
5
Fixing broken windows.
6
Adding a deck.
7
Resurfacing kitchen cupboards.
8
9
Upgrading bathroom fixtures.
Replacing doors.
POTENTIALLY COSTLY FIXES
1
2
Shoring up foundations.
Adding additional rooms, a garage or
moving walls.
3
4
5
6
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