There are many players in the property game. Property investment companies and individuals operating as investment realtors are often in search of cheap homes or discount properties that are not habitable. A single dilapidated house can bring down the value of the entire neighborhood, let alone attracting undesirables and all the problems that go with that.
Fixing up such a property for habitation, or rehabbing is a win for everyone involved. Obviously the initial motive is profit for those buying the investment property but the community benefits as well. Not only is the eyesore removed, but the renovation is likely to transform the bargain property into an attractive addition to the street. In turn, when it is sold, it should fetch a good price. This is in your benefit for when you want to sell your own home as a price precedent in the area will have been set.
Ultimately, the property will generate taxes, supplementing the community’s coffers.
Especially in today’s economy, every job created is a blessing. Rehabbing creates work for contractors, retailers and the spin off services around them, such as food outlets.
On the flip side of this equation, is the retail buyer. Not everyone has the time, expertise, patience or quite honestly stamina for going through this process. Rehabbing is a venture that requires knowledge of everything from the local laws and building regulations through to accurate planning and costing of the work to be done.
Many prefer to stick to their knitting and buy that first house or home from a professional. If the job is done using licensed and insured contractors, the risk is minimal.
Furthermore, these bargain properties often qualify for federal incentives. The total cost to the developer may be significantly lower than building from scratch in another neighborhood. These savings may end up being passed onto the retail buyer, giving them a more bang for their buck. Many of these older houses contain features that are too expensive to fit in today’s market such as solid wood flooring and pressed ceilings.
Rejuvenation is a natural and healthy pattern in the property market. It is great that the charm of historic areas is reclaimed and their former glory reinstated. Rehabbing is not an altruistic activity but it is a business that brings benefits to all.
On a softer note, there are some who believe a home is more than just four walls. Buildings represent memories and contain history. Surely, cherishing and caring for these inanimate treasures is worth more than just the money.
Contact us today to learn more about rehabbing and get on the list of our best investment property deals!
