To fix, or not to fix: The ultimate question

Fixer uppers are typically properties that are in need of maintenance, either structural or aesthetic - or both - and for that reason are likely to sell at a slightly lower price than the general marketing rate for properties of a similar size in the same area. 

On property portals these listings are often described as "having potential", and there are enough home renovation TV shows and video content on social media to know that almost anything can be transformed into something amazing. 

Johan van Schalkwyk, Principal at Leapfrog Roodepoort, takes a more rational view and says that the purchase of a fixer-upper should be subject to the same consideration as any other property purchase. "The first two questions are, can you afford it and does the location appeal to you. Everything else - though also important - is secondary to that," he says. 

The question is then, should you fix up or stay far away? Van Schalkwyk offers his insights below. 

It's personal 

Fixing a property can be a hugely rewarding undertaking, but it can also be one that drives you to the brink. "In my experience, there are 'fixer-upper people' - they love it, they embrace the dust and the rubble, and they'll do it again and again. And then there are people who can't stand the thought of a block of bricks on their front lawn, or temporarily sleeping in the lounge as the bedrooms carpets are replaced. It helps to know which you are before committing to a fixer-upper," Van Schalkwyk shares. 

The point is that a fixer-upper is all about potential, but potential takes time (and money and patience, and more patience, and more money) to realise so it really depends on buyer. 

Location, of course 

It is well understood that the state of a property can be remedied or improved, while the individual property owner can do virtually nothing about the location of the property. "My advice is always to opt for location first, and if that means the worst property in the best location, go for it," Van Schalkwyk says. 

A fixer-upper in a great location is a better bet than a great better in a location that shows little growth, or is simply not where you want to live. 

What's more, a fixer-upper in a great location is often just old in terms of aesthetics but structurally sound, which already makes it an easier fix than having to replace the "bones" of the building too. 

Return on investment 

Purchasing property is a huge, and long-term, financial undertaking, so naturally any buyer wants some assurance that there will be a return on the investment eventually. 

"The value that is added to the property through improvements and renovations will not necessarily result in a '1 + 1 = 2' type increase, but will certainly elevate the value over time," Van Schalkwyk explains. 

His advice in this regard is to consult with a trusted property advisor to discuss the nuances of the particular property as it will be different for each one, but a property professional will be able to give sound advice on the interventions that add real value, as well as insight into market trends and conditions that play a role.

In terms of deciding whether a fixer-upper is "worth it" really depends on your needs, preferences, financial goals and long-term plans. "If you do opt for the fixer-upper, make sure to document that renovation and improvement process - it always makes for the best "before and after" stories," Van Schalkwyk quips.