Investing In 'Fixer-Upper' Houses
May 28th 2007 22:12
Thanks to the booming real estate market, right now is perhaps the best time ever for property speculators and developers to make substantial profits from investing in ‘fixer-upper’ houses. By buying an older property that is in need of renovation, doing the work, and then selling it on at a much higher price, it is possible to make fantastic returns on a relatively small initial investment with little risk.
The key to making money from investing in fixer upper houses is that you can make the purchase at a price much lower than the standard market rate for similar real estate, and then by carrying out the necessary work, make it into a much more desirable place to live, and sell it at a higher price.
When buying a property that you will redevelop, make sure it is in a good neighborhood, as this will add to its resale value when you have finished the work. It is possible to maximize profits on the development by carrying out as much of the work as possible yourself, such as the decorating, although you should leave plumbing and electrical installation to the professionals if you are unsure about how to proceed.
The conventional wisdom amongst property developers is to create an environment within a house that potential buyers can imagine making their own. When you choose colors for the walls, use neutral tones such as cream and magnolia paint that leave a blank canvas for the future owners.
Remember when investing in fixer upper houses to have the building fully assessed before you commit to it, there is nothing worse than buying a house with the intention of making a few cosmetic touches to it before realizing that it actually needs significant building work, as this will completely obliterate any hopes you had of making a profit.
About the Author:
Mark Estates is a freelance writer who frequently writes for such sites as the real estate investment site sharkbaitsoftware.com and the California Online Housing Market.
Article Source: www.iSnare.com
The key to making money from investing in fixer upper houses is that you can make the purchase at a price much lower than the standard market rate for similar real estate, and then by carrying out the necessary work, make it into a much more desirable place to live, and sell it at a higher price.
When buying a property that you will redevelop, make sure it is in a good neighborhood, as this will add to its resale value when you have finished the work. It is possible to maximize profits on the development by carrying out as much of the work as possible yourself, such as the decorating, although you should leave plumbing and electrical installation to the professionals if you are unsure about how to proceed.
The conventional wisdom amongst property developers is to create an environment within a house that potential buyers can imagine making their own. When you choose colors for the walls, use neutral tones such as cream and magnolia paint that leave a blank canvas for the future owners.
Remember when investing in fixer upper houses to have the building fully assessed before you commit to it, there is nothing worse than buying a house with the intention of making a few cosmetic touches to it before realizing that it actually needs significant building work, as this will completely obliterate any hopes you had of making a profit.
About the Author:
Mark Estates is a freelance writer who frequently writes for such sites as the real estate investment site sharkbaitsoftware.com and the California Online Housing Market.
Article Source: www.iSnare.com
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