With a fixer upper, you are presented with the opportunity to make the home more valuable. Many times, you will find this kind of home at approximately 8 percent below market value. You will be paying less in taxes as well because the taxes are calculated based on your home’s sale price. So, how do you even go about finding your ideal fixer upper? Read on below for more information.

The Perfect Choice

It is often said that the perfect fixer upper is one that everyone will want to own in the future, but no one wants it right now. The location is going to play a key role in your selection. Make sure the home is in a desirable location or an up and coming neighborhood.

The layout of the home should also flow and have a good configuration to start with; otherwise, you may find yourself spending even more money to move and take down walls.

Choosing a Mortgage

When you choose this kind of home, there are different mortgage loans to consider because of the condition of the home. Renovation loans, for example, allow you to finance the home while also making improvements at the same time.

The improvements you make can then be paid off over a longer time and typically at a lower interest rate than with other types of financing.

Another type of loan is a construction loan. It is a more short-term option and often comes with a higher interest rate, but it provides the owners with the funds they need to build and renovate the property.

Before you can consider this type of loan, however, you need to find a qualified builder, have your minimum 20 percent down payment, and have the value of the property in its current condition appraised.

Less Competition

Since more and more buyers are looking to purchase newer and updated homes, you will find little competition when it comes to the fixer uppers that are available. However, instead of competing with other buyers, you are often competing with builders and investors which can drive the price up.

Final Thoughts

When choosing a fixer upper, make sure you understand your needs and make sure the home is what you are looking for. Depending on the renovations that need to be done, it can be a time-consuming project.

Finally, keep in mind that the property taxes will go up following the renovations because of its new value. If you remember all this info and you know where to draw the line, and you can envision the home’s potential, then you are ready to start your journey towards finding the perfect fixer upper.

Central Los Angeles has some of the most beautiful examples of historic architecture in the country. From classic Victorian-style mansions to Craftsman Bungalows to trendy Mid-Century Modern ranch homes, there’s something for every architecture lover. However, sadly many of these homes have gone into disrepair. Yet, for the right homeowner, a historical restoration project is a dream. If you want to restore a historic home in the Los Angeles area, here are some tips.

Understand The Local Governmental Resources

The local governments of Los Angeles have a variety of programs and resources that can help homeowners restore a historic home. The first is the Mills Act Program which helps historic homeowners get funding to restore their home with property tax incentives. Your building has to qualify to receive this benefit and you will need to apply. Here’s Los Angeles government’s website so you can learn more. The second is a program called HPOZ (Historic Preservation Overlay Zones). HPOZ is designed to help historic homeowners connect with preservation experts, make appropriate renovations, and increase their property values. You can read more about HPOZ here.

Learn About The Restoration Process

Restoring an older home is a commitment. You will need time, tools, knowledge, and resources to make sure that it is done correctly. The process will not happen overnight. Before making the commitment, weigh the costs and the benefits of self-restoration. Thanks to the efforts of local community organizations, there are a lot of already restored historic homes in the Los Angeles community that may be more cost-effective. That isn’t to say you shouldn’t take on this rewarding task. HPOZ is a great learning resource, they can really help you understand how to restore a historic home and decide if it is right for you.

How To Select A Historic Home

When choosing a historic home for restoration, the best thing you can do is work with an expert real estate broker. Real estate brokers can provide you with the insight need to select the right neighborhood, find your ideal architectural style in your price range, and how you can get a great return on investment. At Aspire, our specialty is the historic neighborhoods in Los Angeles. We can help you find the ideal home for your restoration project in a community with a lot of support and resources. Contact us today to learn how!

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