A Chance to Own a Nice Home

Buying a fixer-upper can be a smart way to own a home, but it may cost more to renovate than you bargained for. If you can find a run-down home that's well below market price in a good neighbourhood, you may be on to something. However, before you commit to purchasing, get a professional opinion on how much it will cost to renovate. Cosmetic improvements, such as paint and floor refinishing, generally cost less than the return in the increase in market value. It's the major upgrades, such as roof, windows, electrical and plumbing that you need to give careful thought to. These are often considered "invisible" upgrades and may not raise the value of the house enough to offset the cost of the renovation. Do the math. Add the initial price of the home together with the projected renovation costs. Base these costs on a brutal professional assessment of the home's condition, along with perhaps an additional 20 percent for unexpected problems and cost overruns. Then compare the total with the price of comparable homes in the neighbourhood. How does it measure up? See Eleuthera Real Estate Op

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