There's no shortage of DIY shows out there showing the pitfalls of renovations (Mike Holmes) and the benefits of taking on a renovation (Love It or List It, Income Property). While most people prefer the ease of buying a move-in ready home, if you're budget conscious, buying a Handy Man Special has a certain appeal for those who have patience and no fear of hard labour.
In October a house in Markham Village went on the market and sold for $655,000. It sold in 9 days and by all accounts is a fairly average home for the area. The home was an estate sale and at the time offered only exterior photo's given its need for "TLC". The new owners went through and replaced flooring, painted, updated the kitchens and bathrooms and subsequently re-listed the home 2 months later. It sold in 7 days for $810,000! The home has the modern appeal buyers are looking for and is move-in ready. If you subtract real estate fee's and taxes and estimated renovation costs of ($50,000) you can see new home owner made a sizeable profit for 2 months of effort. Now imagine you are doing this for yourself the total home costs might be closer to $715,000 so you would now own a $810,000 home for $715,000 customized to your specifications.
If you're interested in knowing more about project houses and what it takes to 'make' your own dream home contact me and I would be happy to share what I know.