Do any of you ever watch HGTV, or is the fact that I watch it just another sign that I’ve become a boring, married man? Just kidding. I LOVE this network’s real estate shows, especially “Property Brothers.” The show is hosted by twin brothers, one a real estate agent, and the other a contractor. They work together with each client, first helping them find a great deal on a home and then helping them renovate the home, since clients end up buying properties that need lots of work in order to get a nice discount on the purchase price. Buying fixer-uppers as an investment is a great strategy for all kinds of real estate buyers, whether you’re a savvy investor or a scrupulous home buyer with limited funds. You might be surprised to learn that buying a fixer doesn’t have to mean buying a dilapidated “money pit.” You can get a great discount on a home that simply needs a good deal of relatively minor cosmetic work, as opposed to lots of infrastructural repair.
For a home buyer looking to treat their personal home as more of an investment, buying a home, rehabbing it yourself, and selling it a profit can be a great way to grow your net worth, especially if you repeat the process over the years. In my opinion, I think this can be a particularly great strategy for a first time home buyer who’s a little cash short or who is worried about over extending themselves financially even though their bank has already pre-approved them on a higher loan.
In fact, this exactly describes my wife’s and my situation on our first home purchase. Even though the bank had prequalified us on more expensive homes, we had analyzed our monthly budget and were concerned about the higher mortgage payments on more expensive homes.
Check out my home search website to find a great home in the Northern Virginia area
To read the second post in this two part blog series, click here