I can't really afford the move in ready homes in my area. They are worth more than 350K for a 1200 sq. foot home. I've seen a few homes that are around 200-250K. However, they are very rundown. Often they were homes of elderly people, and are very dated. Think rundown 60's and 70's decor. Most of the kitchens and bathrooms need to be ripped out and completely redone. The carpets need to be ripped up and hardwood put down.
Right now, I have about 30K saved for a down payment. If I purchase on of these homes, how would I go about financing these projects. If do these repairs well, I could double the value of these homes.
2007-06-13 19:57:43 · 8 answers · asked by Answer Girl 2007 5 in Home & Garden ➔ Decorating & Remodeling
I'm not going to move. All my family is in this area. I love the school systems, the culture and the people. Where we live, we have higher income levels. It is a stretch, but everyone here does it. We have no choice.
I'm not comfortable moving. All the homes in good towns, in this area, cost this much.
2007-06-13 20:11:52 · update #1
Don't be in a big hurry to buy. I live south of Miami and the housing market has peaked at about what you quoted for houses on very small lots. The older homes that need work are on larger lots. There is a lot more to consider that the base cost of housing. Look at the property taxes and homeowners insurance. The price of real estate here in S. Fla is not unreasonable, but the cost of insurance has more than tripled and a lot of people can no longer afford to keep their homes. I am currently renting a house that the owner desires to sell and the prices in the neighborhood have dropped from $410K to $329K since February in a four year old gated community.
Yes, you can more than double your equity in a short time. Check with FHA for financing options. They have a 1st time buyers program.
2007-06-13 20:25:55 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Try to get a mortgage with a low down payment so you can use your cash for the repairs. You are better off financing more on your mortgage then you are using credit cards or getting a line of credit to do the repairs. Also, remember that it may be ugly but if it's functional you don't have to replace everything at once. When you decide on a house then make a list of the repairs you want to make and put them in order of importance. Maybe you can live with that 60's/70's kitchen while the carpet is being torn out and hardwood put down. If you can hold off on some of the repairs it will give you more time to save up for those repairs.
2007-06-14 09:04:36 · answer #2 · answered by angela 6 · 0⤊ 0⤋
Check with your bank for a loan so you can get the major projects done. The updates you are talking about are important especially if you want to increase the value of the home. Just be aware that these are major projects so plan to stay somewhere else while the renovation is being done. First and foremost, make sure the home you purchase is in the right location. Are other homes being renovated? If the neighborhood is turning around, then your investment would be worth it.
2007-06-14 08:27:33 · answer #3 · answered by dawnb 7 · 0⤊ 0⤋
an older home can be good value if it has a good location.
The most important aspect of a house is its location and outlook relative to adjacent houses. If the view from the main bedroom is the back of a neighbour's garage then no amount of decoration will fix that.
If you are buying to modernise and sell at a profit, plan to do the minimum of work and get it finished very quickly.
It is very important how a house looks from the road as you approach it. Clean driveway, cut grass, good plants etc, attractive and welcoming. By the time buyers get to the third bedroom with it's scratched paintwork, it won't matter because they have already decided that they like the house.
2007-06-14 05:54:36 · answer #4 · answered by XT rider 7 · 0⤊ 0⤋
When you look at the run down house imagine them as if they were new and beautiful. Move in and work on one thing at a time. Work on the things that absolutly need to be down first then work on the other things later when you can afford it. Have your family and friends come in and help so you dont have to pay labor cost for things. And if you cant afford supplies try to get a home equity loan and if you cant get that just wait awhile until you can save up a little more money to fix the place up....or when you get a loan on your house try to get it 20 or 30 thousand dollars over what the house cost so you can use that money for the fix ups.
2007-06-14 03:32:09 · answer #5 · answered by Anonymous · 0⤊ 0⤋
If your credit rating is good and you have decent cash down for the buy, your financial company (bank, etc) will likely lend you the money for renovations, repairs and upgrades. This can be calculated in your mortgage rate.
Take it slow. Do one thing at a time when renovating. Try to do alot of the work yourself. If you don't know how (such as tiling) you can learn easily.
Good luck with your new home!
2007-06-14 09:51:20 · answer #6 · answered by The ReDesign Diva 7 · 0⤊ 0⤋
First of all..if homes in your area are that high priced...time to MOVE. Right now, I am looking at 1208 sq ft home on 1 acre of land for 114,900 and that is a bit HIGH.
Look outside your general area but easily drivable to work. Don't make yourself house poor but putting all your money into the house and not able to live there.
Good luck
by the way..I am in central NC...housing much more affordable here.
2007-06-14 03:07:12 · answer #7 · answered by askmenicely1961 3 · 0⤊ 3⤋
Get a new METAL roof. This will incredibly increase the value of the house.
Here's a link to a metal roofing website. They'll give you a free estimate. http://www.metalroofingwholesalers.com
2007-06-14 09:08:43 · answer #8 · answered by wygot 1 · 0⤊ 1⤋