7 Reasons to Buy Fixer Uppers vs New Homes for Your Personal Residence

August 31, 2018

7 Reasons to Buy Fixer Uppers vs New Homes for Your Personal Residence

I have bought and rehabbed 3 fixer upper properties to live in as my own personal residence. It’s definitely not as easy as buying a new house, but here is why I choose to buy fixer uppers instead of new homes:

  1. Equity - The main reason I buy fixer uppers is it gives me a chance to build equity into the home, that I wouldn’t otherwise be able to do buying new.
  2. When you buy a new home you are buying at retail prices, so the only way you can gain equity is through market appreciation.
  3. When buying fixer uppers you can ‘force appreciation’ by buying at a discount and making smart improvements that add value.  My current personal residence was bought for $80k, and needed $75k in repairs, but is now worth $300k+.  That’s over $100k in equity!
  4. Customization - When buying a fixer upper you get the opportunity to truly customize every aspect of the home and make the kitchens, bathrooms and finishes match your design style and lifestyle.
  5. Like New - My current personal residence has basically been renovated to meet the today’s building standards of a new home.  My home has all new electrical, new plumbing, new furnace, new A/C, new kitchen, bathrooms, etc…
  6. Most New Houses are Cookie Cutter - Most new neighborhoods have 3 to 4 ‘cookie cutter’ floor plans in the neighborhood so every house on the block looks the same.
  7. Location - I want to live close to downtown Kansas City.  Most neighborhoods within 5 minutes of downtown were built in the 1930s to 1960s.  If I wanted to buy a new home, I would likely be 15 minutes outside of the downtown area.
  8. Trees - I’m not necessarily a "tree hugger", but I appreciate well established neighborhoods with large trees.  Newer neighborhoods in the area barely have a tree in sight.
  9. Enjoyment - I personally enjoy rehabbing old houses and taking on the challenge of buying an old, run-down house and making it my own.

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