The Gen Z population is facing challenges in homeownership due to a lack of affordable starter homes. According to a recent report, 22% of Gen Zers believe that the high cost of entry into the housing market is a barrier. In an attempt to overcome this hurdle, many are considering fixer-upper homes as a more affordable option. However, buying a fixer-upper comes with its own set of challenges that could overshadow the initial cost savings.
While 57% of Gen Zers are open to buying a fixer-upper, there are risks involved in this decision. The report found that 27% of Gen Z homeowners who purchased a fixer-upper regretted their choice. This regret can be attributed to the substantial costs and unexpected challenges that come with renovating an older or damaged property. Many first-time buyers underestimate the expenses associated with repairs and renovations, leading to feelings of overwhelm and regret.
Although buying a fixer-upper may offer short-term savings compared to move-in ready homes, it is essential for buyers to factor in renovation costs. The median cost of a fixer-upper is significantly lower, saving buyers an average of $117,000. However, potential homeowners need to consider the functionality of the home, as significant repairs or missing amenities could delay occupancy and add to the overall costs. It is crucial to prioritize functionality over cost savings when evaluating fixer-upper properties.
One of the main risks associated with fixer-upper homes is the presence of hazardous materials such as asbestos. Despite the potential health risks, over half of Gen Zers surveyed indicated they would consider buying a home with asbestos. It is essential for buyers to conduct thorough inspections to ensure that the property is safe and livable. Health and safety should be top priorities when purchasing a fixer-upper, as the presence of toxins or structural issues can pose serious risks to occupants.
When considering a fixer-upper purchase, buyers should pay close attention to specific factors that could impact the overall cost and feasibility of renovations. The condition of the roof, plumbing, electricity, walls, stairs, and overall land should be thoroughly evaluated. These components play a significant role in the overall safety and livability of the property. A comprehensive home inspection by a qualified professional can help identify potential issues and prevent costly surprises down the line.
While buying a fixer-upper home may seem like a cost-effective option for Gen Z homebuyers, it is essential to weigh the pros and cons carefully. The potential savings of purchasing a fixer-upper must be balanced against the risks and challenges associated with renovating an older or damaged property. By conducting thorough inspections, prioritizing functionality, and considering health and safety concerns, buyers can make informed decisions when it comes to purchasing a fixer-upper home.