If you are renting or looking for your first home, there are always rough diamonds. However, some anxious owners cannot wait to leave their old dirty apartment and ask for a comfortable place to call home.
As such, many will face the big dilemma of buying a house that is ready to move or a house of repairs (fixer upper). Undoubtedly, there are pros and cons of each and the final decision will largely depend on your particular situation. After seeing both corners, you can feel confident in making the right decision for your dream home!
Fixer Upper Pros
Discounted prices
Undoubtedly, one of the biggest advantages when buying a fixer-upper is the price. Trust workshops give homeowners who are eager to own their property, even if they cannot afford the prefabricated houses that many of us really want.
Homes that need work almost always have an agreed price, because the landlord knows that the house needs work before it can sell or occupy it. Therefore, the selling price is usually lower than the potential market value. Therefore, for those who want to move within a few years, it makes sense to buy a fixer-upper of the highest quality.
Tax savings
The property taxes are based on the sale price of the house. Therefore, the bi-annual property taxes will be lower if you purchase a fixer-upper as compared to a new house. In addition, some repair providers, according to American Financial Resources Inc., also allow homeowners to apply for an investment tax credit for eligible rehabilitation costs. This is generally true for historic homes listed in the National Register of Historic Places.
Design Options
Another basic advantage of buying a fixer house is beside the money a blank canvas. If you decide that you are spending money to repair it, you have the freedom to design the house as you wish. If you want an open concept, you can do it. If you want to go fat in the kitchen, you can do it too.
Fixer-Upper Cons
Extra work
There is no doubt that fixer-upper needs more work than relocated houses. Not only do you need to find local contractors and work with them during the refurbishment process, but to save money, many impatient owners have got their hands dirty. Removing an old bathroom, painting a room, or destroying a room or the whole house may be a daunting task, but many find it challenging. In any case, get ready to get your hands dirty.
More time
Moving houses cost more because they are just that. Once you’ve unpacked your hundreds of boxes, your house is ready. The same cannot be said for a fixer-upper. Often, the conversion can take months to complete the house. This is especially problematic for those who work with an expired lease. We also know how exciting it is to move to a new home. Unfortunately, this emotion needs to fade away when you purchase a fixer-upper.
Benefits of turnkey house
New elements of design and technology
There are some design elements that seem to come with every new or renovated house. In contrast to a fixer-upper, new houses are equipped with design elements of the current lifestyle. These features include open floor plans, walk-in closets, barn doors, and wooden floors, just to name a few.
Easier financing
As mentioned above, you can get financing for a fixer-upper, but it might be easier to get a mortgage loan ready for a turnkey home. Your chances, of course, depend on your credit history, your down payment, your housing income and more, but it will be easier to get a 30-year fixed mortgage.
Efficient energy
Newer homes tend to be more energy efficient. A low energy house will not only keep you warmer in the winter and cooler in the summer, but you will also save thousands of dollars in utility bills for the entire life of the home.
Drawbacks of turnkey house
Expensive
Turnkey houses are almost always more expensive than a fixer-upper. If they were not, no one would buy a fixer house. So, if you want to buy a house ready for relocation, you expect to pay more than you would for a fixer-upper.
Architectural details
The newer houses rarely offer the unique architectural details that present older homes. While this may not be a problem for some, others love these different details outside the home. Keep in mind that few owners, when they change, change the appearance of their home (except for gardens, pools, etc).
Conclusion
There are dream houses around the world. Some see it as Victorian, while others see it as a new construction. As you have already seen, there are definitely many pros and cons when you purchase a fixer-upper or a turnkey house. With whom you go is your decision!