Everyone seeking to put down roots in Toronto is looking for something a little different. Some home buyers want a house that’s 100% move-in ready, with nothing to do but unpack.
Others want a blank canvas to completely customize to exact specifications. Buying a fixer-upper comes with some challenges, but there is also potential that is nearly unlimited. If you plan to buy a property for the purposes of renovating, here are a few things to keep in mind.
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Don’t Lose Sight of the Future Resale Potential
Everyone is eager and excited to add their personal touches after taking possession of a house. Most of the time, you can customize your space to any vision you can imagine, with very few limits.
The one caveat is to keep the resale value of the property in mind. People are more mobile than ever, and it’s rare for a homeowner to stay in the same place for decades. This means there’s a very good chance you will want to sell the house at some point.
- Move-in ready homes are always popular and in high demand. They’re easier to sell during slower markets and hold their value very well.
- Custom homes have a smaller pool of buyers. If you add so many specific customizations that appeal to you and you alone, you could face major obstacles when the time comes to list. This is especially true if the market is not in your favour.
How specific is too specific? A good rule is to consider how much it will cost to undo your personalization. If you’ve painted a mural of a sunset in the living room, you can switch it back to a neutral colour with minimal investment.
Tearing down or rebuilding a wall is a different conversation. You could lower your home value if not enough people share your enthusiasm for the new layout. Other renovations won’t hurt your chances of selling, but they also won’t necessarily add to your selling price.
Are you looking for a home you can customize in the East End?
You may just find it here in our featured listings.
Check and Re-Check Your Budget
Buying a house to renovate requires multiple budgets. First, there’s the purchase price. Since real estate can be unpredictable, your home could potentially cost more than you anticipate.
Even a house in pristine condition will need regular maintenance. Furnace filters need to be changed, eavestroughs need cleaning, and the trees in the backyard need trimming. These are all expenses to consider over and beyond your purchase price.
Once you factor in all of these costs, then you can start planning for your renovations. Again, it’s a good idea to cushion your budget to allow for unexpected expenses or delays.
An accurate budget is essential when buying a home in Toronto. Our mortgage calculator will help you understand the numbers.
Look Into the By-Laws Before You Offer
Having an exact vision for what you want in your new home can put you at an advantage; it can also be a double-edged sword when you have something very specific in mind. Before committing to a property, first confirm that you can get all of the permits to complete any projects you are planning.
If the work is so detailed and involved that it requires an architectural drawing, chances are you also need a permit with the City of Toronto. Building an addition or solarium, adding or removing walls, putting in a window or door that didn’t exist before, constructing a detached garage or a pool cabana are all major projects. Before you start, be sure to apply for a permit first.
Performing unauthorized renovations contrary to the Ontario Building Code Act can be a risky venture. You might find yourself facing a stop-work order or even a fine. If the work isn’t completed to code, the city might compel you to redo the repair at your own expense. That means double the investment with no benefit.
Simple, non-structural tasks typically do not need a building permit. You can paint the inside of your house any colour or replace existing windows and doors without asking the city for permission. As always, it doesn’t hurt to double-check.
Looking for more tips on finding and securing your ideal home? The posts below can help:
- How Home Buyers Get the Best Results with Declute Real Estate
- Buying Your First Home? Why East Toronto Is Perfect
- Choosing a Neighbourhood: The Top 8 Things to Think About
Consider All Angles
When buying to renovate, it’s important not to get too caught up in the building itself. To expand your thinking, imagine you find a house that already meets every expectation. What else would be important to you?
- Is the home in the right location, close to schools, shopping, and restaurants?
- Have you had a home inspection to ensure structural and electrical integrity?
- Is the lot size ideal? This question is critical, since it’s one of the very few things you can’t change about your home.
- Will the house (after all renovations) and the location still meet your needs five or ten years from now?
Buying a house that you will love and that is a solid financial investment requires careful planning. Explore all angles, preferably under the careful guidance of a dedicated real estate team, and you can look forward to a rewarding homeownership experience.
Do you want to know more about buying or selling a home in Toronto’s East End? Get in touch with us at 416.686.9618 or email info@declute.com today.
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