The pros and cons of a fixer-upper

Looking for a bargain?

Why not buy a disgusting heap of a house that no one else wants and turn it into your dream home?

The Financial Post has an article about the pros and cons of buying a fixer-upper.

It’s a first-time homebuyer’s dream: Snag a rundown house in a terrific neighborhood, and then revamp it to your heart’s content.

But fair warning, that fixer-upper could become your worst nightmare.

“You have to really know what you’re getting into,” says Zillow.com real estate expert Brendon DeSimone. “It could be the case where it seems like a good price and then you dig deeper and find that the windows are off, the electrical foundation is messy, and so on.”

Translation: You could wind up spending more than you bargained for.

Read the full article here.

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Maverick
Guest
Maverick

Why not wait a couple of years and pay 30% less for that fixer-upper?

Seems like a prudent strategy. Not to mention contractors would likely be more willing to provide you with a little extra bang for your buck at that stage of the market.

Or with the money you save, you could buy that house off the poor saps who bought at the top and then proceeded to bankrupt themselves to install granite countertops and track lighting, all to just keep it near their cost price (unlikely). Maybe if you are generous, you can even allow the sellers to say that they “broke even” on their venture (not including the ‘upgrades’ of course).

Bottom line, still far too early to consider buying.

ScubaSteve
Member
ScubaSteve

Vancouver prices will be down 52.2% by November, 2017.

Yes. 52.2%. Not 52.3% or 52.1%.

I can be just as accurate as the BCREA.

patriotz
Member

Missing the forest for the trees. The article doesn’t even touch on the issue of whether the broad market is fairly valued. Almost all of the price swings in SFH are due to land value, which means you are not going to get a “deal” regardless of the condition of the building.

Proud and extremely rich Chinese home owners
Guest
Proud and extremely rich Chinese home owners

@ScubaSteve:

Wake up to take your Psychotic medicine now

asalvari1
Guest
asalvari1

Sorry but I find this article very misleading and dangerous..

When the fixer upper is 1.NN Millions, and you bought it, there is something else that needs fixing first – your head.

good-format
Guest
good-format

I just rented a very nice house for $1850.00 ( I guessed my landlord paid more than $700,000 for it).

The owner (the wife) seems to be ok. But the husband seems to be so rude when I met him (guessing he was so mad at his wife for purchasing the house).

space889
Member
space889

I think The Chronicles of Froogle Scott at VREAA and Mike Holmes show on HGTV should dissaude most average people from either attempting a fixer-upper themselves or buy one (before or after the fix) because there are just too many unknowns, potential problems, and cost overrun.

The quality of fixer uppers that are done for flips in my area has been steadily getting worse and worse since 2001. Seems like the higher the profit potential, the less incentive there is to take pride in one’s work.

Bull! Bull! Bull!
Guest
Bull! Bull! Bull!

Guys! I heard the housing market is going to crash tomorrow! All those evil people who bought property and made tons and tons of money will finally be punished!

We will finally be able to buy a place of our own!

Anonymous
Guest
Anonymous

Guys! I heard the market is going to pop tomorrow! All those worthless bears who cried about the sky falling will never be able to buy in!

They’ll be paying other peoples mortgages forever!

boogeybear
Guest
boogeybear

That there are still people who think it’s still plausible to turn a profit on a fixer upper is incredible in itself.

UnagiDon
Guest
UnagiDon

“Property Always a Good Investment” Says President of National Association of Realtors in India

http://globaleconomicanalysis.blogspot.ca/2012/09/property-always-good-investment-says.html

Van
Guest
Van

Anonymous – Market already popped yesterday. I hear Realtors phones are ringing off the hooks. It’s the fall market baby. And either fall into a new mortgage or keep renting.

Van
Guest
Van

“I just rented a very nice house for $1850.00 ( I guessed my landlord paid more than $700,000 for it).”

I smell bullshit! Where in Vancouver can you get a house for $700,000?

Anonymous
Guest
Anonymous
Patiently Waiting
Member
Patiently Waiting

More international hand-wringing about Canada.

“Société Générale believes Canada still doesn’t have a handle on a frothy real estate market.

Senior foreign exchange strategist Sébastien Galy today cited the risks associated with a protracted period of low interest rates.”

http://www.theglobeandmail.com/report-on-business/top-business-stories/top-business-stories-housing-bubble-is-not-yet-under-control-socgen-warns-canada/article4519999/

VMD
Member
Aug REBGV report: http://www.rebgv.org/news-statistics/home-sellers-continue-outnumber-buyers-greater-vancouver%E2%80%99s-summer-housing-market The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales of detached, attached and apartment properties reached 1,649 in August, a 30.7 per cent decline compared to the 2,378 sales in August 2011 and a 21.4 per cent decline compared to the 2,098 sales in July 2012. August sales were the second lowest total for the month in the region since 1998 and 39.2 per cent below the 10-year August sales average of 2,711. “Home sales this summer have been lower than we’ve seen for most of the past ten years, yet we continue to see relative stability when it comes to prices,” Eugen Klein, REBGV president said. New listings for detached, attached and apartment properties in Greater Vancouver totalled 4,044 in August. This represents a 13.7 per cent decline compared to August… Read more »
gokou3
Guest
gokou3

This twin-building complex near Lougheed mall is a financial disaster. Below unit goes from $449k to $439k to now $407k listing. Unit is vacant per description, so apparently a naive investor who’s tired of renting at a negative cash flow is bailing.

http://webcache.googleusercontent.com/search?q=cache:sOtzk08Ta88J:www.6717000.com/mls/V956163-310-9868-cameron-st.html+&cd=1&hl=en&ct=clnk&gl=ca

http://webcache.googleusercontent.com/search?q=cache:5tg_7kpfEc4J:www.ecorealtyinc.ca/listing%3Fid%3D259550631+&cd=2&hl=en&ct=clnk&gl=ca

http://mlslink.mlxchange.com/DotNet/Pub/EmailView.aspx?r=713205761&s=BRC&t=BRC

Deliverator
Member
Deliverator

A fixer-upper in a great neighborhood can get where you want to be. Per DeSimone: “If you can spend $375,000 and put some $75,000 into it, now you’re in the neighborhood for $450,000 rather than $500,000.” It’s a great deal.

What neighborhood is this? Oh, right – it’s not in the GVRD.

good-format
Guest
good-format

@Van:

I never said I rented the house in Vancouver city. But it is in Great Vancouver

/dev/null
Member
/dev/null

@VMD: Most shocking (for me) statistic in that release is in the footnote – there are 11,000 realtors in Vancouver/REBGV?! Wow.

VMD
Member
VMD
Member
Patiently Waiting
Member
Patiently Waiting

My internet sleuthing indicates The Key is not dead yet. Scam is trying to hire a team of realwhores to do something. Not sure what it is.

My main concern is whether he’s going to try to incite racial hatred again. I’ll be watching, you hear me Scam?

Bag it and tag it
Guest
Bag it and tag it

@VMD: ““Home sales this summer have been lower than we’ve seen for most of the past ten years, yet we continue to see relative stability when it comes to prices,” Eugen Klein, REBGV president said”

Prices dropped 1.1% from last month. This annualizes to 13%. That’s supposed to be stable?

gokou3
Guest
gokou3
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