[et_pb_section fb_built=”1″ _builder_version=”4.18.0″ _module_preset=”default” custom_padding=”55px||||false|false” global_colors_info=”{}” custom_margin__hover_enabled=”off|desktop” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on” da_disable_devices=”off|off|off”][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” width=”95%” max_width=”100%” custom_margin=”||-24px||false|false” custom_padding=”55px||||false|false” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][wahi_breadcrumb _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][wahi_breadcrumb-link title=”Real Estate 101″ _builder_version=”4.18.0″ _dynamic_attributes=”link_option_url” _module_preset=”default” link_option_url=”@ET-DC@eyJkeW5hbWljIjp0cnVlLCJjb250ZW50IjoicG9zdF9saW5rX3VybF9wYWdlIiwic2V0dGluZ3MiOnsicG9zdF9pZCI6IjcyMiJ9fQ==@” global_colors_info=”{}”][\/wahi_breadcrumb-link][wahi_breadcrumb-link title=”Buy” _builder_version=”4.18.0″ _dynamic_attributes=”link_option_url” _module_preset=”default” link_option_url=”@ET-DC@eyJkeW5hbWljIjp0cnVlLCJjb250ZW50IjoicG9zdF9saW5rX3VybF9wYWdlIiwic2V0dGluZ3MiOnsicG9zdF9pZCI6IjE2MzIifX0=@” global_colors_info=”{}”][\/wahi_breadcrumb-link][wahi_breadcrumb-link title=”@ET-DC@eyJkeW5hbWljIjp0cnVlLCJjb250ZW50IjoicG9zdF90aXRsZSIsInNldHRpbmdzIjp7ImJlZm9yZSI6IiIsImFmdGVyIjoiIn19@” _builder_version=”4.18.0″ _dynamic_attributes=”title” _module_preset=”default” module_text_color=”#686E6E” global_colors_info=”{}”][\/wahi_breadcrumb-link][\/wahi_breadcrumb][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.18.0″ _dynamic_attributes=”content” _module_preset=”default” header_font_size=”3.5rem” header_line_height=”4.5rem” header_font_size_tablet=”42px” header_font_size_phone=”3rem” header_font_size_last_edited=”on|phone” header_line_height_tablet=”4.5rem” header_line_height_phone=”3.2rem” header_line_height_last_edited=”on|desktop” global_colors_info=”{}”]@ET-DC@eyJkeW5hbWljIjp0cnVlLCJjb250ZW50IjoicG9zdF90aXRsZSIsInNldHRpbmdzIjp7ImJlZm9yZSI6IjxoMT4iLCJhZnRlciI6IjwvaDE+In19@[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” custom_padding=”||3px|||” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][wahi_socialsharing _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][\/wahi_socialsharing][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.18.0″ _module_preset=”default” text_font_size=”24px” text_line_height=”1.5em” custom_margin=”||12px|||” global_colors_info=”{}”]<\/p>\n
A close look at the pros and cons of buying a fixer-upper house and what to tackle first.<\/span><\/p>\n [\/et_pb_text][et_pb_text _builder_version=”4.27.4″ _module_preset=”default” text_font_size=”1.13rem” text_line_height=”1.18rem” hover_enabled=”0″ global_colors_info=”{}” sticky_enabled=”0″]<\/p>\n By Emily Southey<\/a> | 11 minute read<\/p>\n [\/et_pb_text][et_pb_post_title title=”off” author=”off” date_format=”M j” categories=”off” comments=”off” featured_image=”off” _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_post_title][et_pb_image src=”@ET-DC@eyJkeW5hbWljIjp0cnVlLCJjb250ZW50IjoicG9zdF9mZWF0dXJlZF9pbWFnZSIsInNldHRpbmdzIjp7fX0=@” align=”center” force_fullwidth=”on” _builder_version=”4.18.0″ _dynamic_attributes=”src” _module_preset=”default” custom_padding=”40px|||||” border_radii=”on|32px|32px|32px|32px” global_colors_info=”{}”][\/et_pb_image][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.18.0″ _module_preset=”default” text_font_size=”21px” text_line_height=”1.6em” header_2_font=”||||||||” header_2_font_size=”36px” header_2_line_height=”1.3em” header_3_font_size=”1.25rem” header_3_line_height=”1.88rem” header_4_font=”|700|||||||” header_4_font_size=”1.25rem” header_4_line_height=”1.88rem” global_colors_info=”{}”]<\/p>\n As a first-time homebuyer, you might be wondering if buying a fixer-upper is the right choice for you. Though the prospect of buying a home at a cheaper price and renovating it to your liking might sound appealing, there is a lot to consider, especially if it\u2019s your first-ever home purchase.<\/p>\n –<\/span><\/p>\n If you\u2019ve stumbled upon this article then you\u2019re probably asking yourself \u201cShould I buy a fixer-upper for my first home?\u201d Unfortunately, there is no clear-cut answer to this question. However, we can help provide you with the necessary information to make this decision for yourself.<\/p>\n First off, what is a fixer-upper? A fixer-upper is a property that requires major repairs or renovations to live in comfortably. Since extra time and money are needed to get them in a livable condition, fixer-uppers are usually priced significantly lower than similar homes in better condition. Fixer-upper homes might also be referred to as renos, distressed properties, flipper houses, or rehab homes.<\/p>\n The repairs that fixer-uppers require are usually substantial. For example, they might involve replacing walls, floors, or even the roof. They usually also involve minor upgrades, like painting and redecorating. While there are many reasons why a first-time homebuyer might purchase a fixer-upper, one of the most common reasons is to save money.<\/p>\n Move-in-ready homes stand in direct contrast to fixer-uppers. Although the term \u201cmove-in-ready\u201d is a slight misnomer, the general idea is that these homes require little to zero repairs, upgrades, or maintenance before the homeowner can move in. In theory, if you purchase a move-in-ready home, you should be able to occupy the home and start living in it as soon as the deal closes. With a fixer-upper home, this is rarely possible as the necessary renovations and repairs are major and can take considerable time to complete.<\/p>\n –<\/span><\/p>\n Now that you know what a fixer-upper is, let\u2019s dive into the pros and cons of buying one as a first-time homebuyer. The pros and cons of buying a fixer-upper are as follows:<\/p>\n –<\/span><\/p>\n The first and most significant pro of buying a fixer-upper is the cheaper purchase price. Fixer-uppers are generally much less expensive than similar homes that are move-in-ready. Cost is an important factor for many Canadians, but especially for first-time homebuyers who might not have as much money in savings as those already in the housing market. Though you\u2019ll have to factor in the cost of renovations, if you choose to do some of them yourself (for example, painting or hanging curtains), you could save yourself hundreds or even thousands of dollars.<\/p>\n –<\/span><\/p>\n Cheaper purchase prices often translate to lower mortgage payments since you won\u2019t require as large a loan. Therefore, by purchasing a fixer-upper, first-time homebuyers may have lower monthly mortgage payments. However, if you need to take out a renovation loan to fund the necessary upgrades, you should budget for this.<\/p>\n –<\/span><\/p>\n First-time homebuyers might be pleased to learn that when you buy a fixer-upper and renovate it, your home\u2019s value typically appreciates much faster than the general real estate market. This means more potential for profit, especially if you decide to turn around and sell it in the near future.<\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.18.0″ _module_preset=”default” background_color=”#edf7f3″ global_colors_info=”{}” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on” da_disable_devices=”off|off|off”][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.18.0″ _module_preset=”default” header_2_text_align=”center” header_2_text_color=”#38505b” header_2_font_size=”2.63rem” header_2_line_height=”3.75rem” max_width=”800px” module_alignment=”center” header_2_font_size_tablet=”32px” header_2_font_size_phone=”27px” header_2_font_size_last_edited=”on|phone” header_2_line_height_tablet=”3.75rem” header_2_line_height_phone=”32px” header_2_line_height_last_edited=”on|phone” global_colors_info=”{}”]<\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on” da_disable_devices=”off|off|off”][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.18.0″ _module_preset=”default” text_font_size=”21px” text_line_height=”1.6em” header_2_font=”||||||||” header_2_font_size=”36px” header_2_line_height=”1.3em” header_3_font_size=”1.25rem” header_3_line_height=”1.88rem” header_4_font=”|700|||||||” header_4_font_size=”1.25rem” header_4_line_height=”1.88rem” global_colors_info=”{}”]<\/p>\n Another advantage of buying a fixer-upper is that doing so might make you eligible for special mortgage programs or homebuyer incentives. As a first-time homebuyer, you likely already have several incentive programs to take advantage of. But if you buy a fixer-upper, there might be even more. For example, if you substantially renovate an existing house in Ontario<\/a>, you might be eligible for the provincial government\u2019s GST\/HST rebate.<\/p>\n –<\/span><\/p>\n Renovating a fixer-upper provides a rare opportunity for customization. If you buy a move-in-ready home, chances are there will be some aspects of it that aren\u2019t to your taste. But with a fixer-upper, you have the chance to update everything to your liking. For example, if you prefer light hardwood flooring to dark walnut, you can choose to go that route since you have to replace the floors anyway. Ultimately, you get to make your own design choices, customizing the space to your tastes. This is a major pro for many homebuyers.<\/p>\n –<\/span><\/p>\n One final pro of buying a fixer-upper house is that it might allow you to live in a neighbourhood you otherwise couldn\u2019t afford. If location is top of mind but the homes in your dream neighbourhood are way out of your price range, finding and purchasing a fixer-upper might be a great solution.<\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.24.2″ _module_preset=”default” min_height=”35px” custom_padding=”0px||0px||true|false” da_disable_devices=”off|off|off” global_module=”1002″ saved_tabs=”all” locked=”off” global_colors_info=”{}” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on” da_disable_devices=”off|off|off”][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.18.0″ _module_preset=”default” text_font_size=”21px” text_line_height=”1.6em” header_2_font=”||||||||” header_2_font_size=”36px” header_2_line_height=”1.3em” header_3_font_size=”1.25rem” header_3_line_height=”1.88rem” header_4_font=”|700|||||||” header_4_font_size=”1.25rem” header_4_line_height=”1.88rem” global_colors_info=”{}”]<\/p>\n The first con of buying a fixer-upper is that there aren\u2019t nearly as many options on the market. The vast majority of houses are move-in-ready. Therefore, finding the right fixer-upper for you can take time and patience.<\/p>\n –<\/span><\/p>\n The second disadvantage of buying a fixer-upper as a first-time homebuyer is that renovations can be expensive. Although the purchase price of the home will likely be less, you will need to account for the cost of substantial repairs. Repairs are expensive and often end up costing more than you initially thought. Therefore, you\u2019ll have to make sure you have room in your budget for the necessary renovations (plus a little wiggle room). Remember that during this time, you will likely also be responsible for making monthly mortgage payments.<\/p>\n –<\/span><\/p>\n Renovating a home can be extremely overwhelming. Whether you choose to take a DIY approach or hire a contractor, renovating is stressful, disruptive, and time-consuming. It can put even the best relationships to the test and can add a lot of stress to your day-to-day lives. You will need to be prepared for the realities of renovations if you want to buy a fixer-upper.<\/p>\n –<\/span><\/p>\n Depending on the extent of the repairs, you might need to hire a contractor to complete them. Finding a reputable contractor requires considerable research and can be risky if you don\u2019t have word of mouth to rely on. Plus, contractors are known for delays, so you should expect the project to take longer than you think.<\/p>\n –<\/span><\/p>\n Finally, a lot can go wrong when you purchase a fixer-upper. The reality is that, even with a proper home inspection, you won\u2019t know the full extent of the home\u2019s condition until renovations begin. From asbestos in the walls to knob-and-tube wiring, a lot can go wrong that can significantly increase the cost and timeline of your renovation project.<\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.18.0″ _module_preset=”default” background_color=”#f0faf4″ custom_padding=”15px||3px|||” global_module=”882″ saved_tabs=”all” global_colors_info=”{}” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on” da_disable_devices=”off|off|off”][et_pb_row custom_padding_last_edited=”on|phone” _builder_version=”4.18.0″ _module_preset=”default” custom_margin=”21px|auto||auto||” custom_margin_tablet=”” custom_margin_phone=”” custom_margin_last_edited=”on|phone” custom_padding=”49px||61px||false|false” custom_padding_tablet=”” custom_padding_phone=”” locked=”off” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.18.0″ _module_preset=”default” header_2_text_align=”center” header_2_text_color=”#38505b” header_2_font_size=”2.63rem” header_2_line_height=”3.2rem” custom_margin=”||25px|||” custom_margin_tablet=”” custom_margin_phone=”|5px||5px|false|true” custom_margin_last_edited=”on|phone” custom_padding=”||0px||false|false” header_2_font_size_tablet=”2.63rem” header_2_font_size_phone=”2rem” header_2_font_size_last_edited=”on|phone” header_2_line_height_tablet=”3.75rem” header_2_line_height_phone=”2.5rem” header_2_line_height_last_edited=”on|desktop” locked=”off” global_colors_info=”{}”]<\/p>\n [\/et_pb_text][et_pb_divider show_divider=”off” _builder_version=”4.18.0″ _module_preset=”default” custom_padding=”||0px|||” locked=”off” global_colors_info=”{}”][\/et_pb_divider][et_pb_text admin_label=”Text” _builder_version=”4.18.0″ _module_preset=”default” text_text_color=”#e8db3a” text_font_size=”20px” text_orientation=”center” min_height=”35.8px” custom_margin=”-24px||32px||false|false” custom_padding=”||||false|false” global_colors_info=”{}”]<\/p>\nShould I Buy a Fixer-Upper for My First Home?<\/h2>\n
The Pros and Cons of Buying a Fixer-Upper as a First-Time Homebuyer<\/h2>\n
Pro: Cheaper purchase price<\/b><\/h3>\n
Pro: Lower mortgage payments<\/b><\/h3>\n
Pro: Faster home appreciation<\/b><\/h3>\n
\u201cA fixer-upper is a property that requires major repairs or renovations to live in comfortably. Since extra time and money are needed to get them in a livable condition, fixer-uppers are usually priced significantly lower than similar homes in better condition.\u201d<\/h2>\n
Pro: Eligibility for homebuyer assistance or special mortgage programs<\/b><\/h3>\n
Pro: Greater opportunities for customization<\/b><\/h3>\n
Pro: Living in a neighbourhood you otherwise couldn\u2019t afford<\/b><\/h3>\n
Con: Fewer options<\/b><\/h3>\n
Con: Renovations are expensive<\/b><\/h3>\n
Con: Renovations can be stressful<\/b><\/h3>\n
Con: You might be reliant on a contractor<\/b><\/h3>\n
Con: A lot can go wrong<\/b><\/h3>\n
We put the real<\/em> back in real estate.<\/span><\/h2>\n