Most buyers never consider purchasing a property that isn't in a livable condition. And in many cases, there wouldn't be much benefit to it, since they are planning to live there. But if you think of the purchase as an investment in your future, there could be advantages -- that's why most people who do purchase fixer-uppers are investors.

It should come as no surprise that fixer-uppers tend to cost less than move-in ready homes of a similar size, lot area, and location. But this isn't the correct way to look at the investment. What it also means is that you can find properties in need of fixing with a larger lot or better location than a move-in ready home for the same price. Furthermore, the property continues to yield a return on investment as you upgrade, repair, and remodel. You end up with a property that has equal or potentially higher value than similar properties, while paying a fraction of the cost and building equity the entire time. It also might drive up the area's desirability, further increasing property values overall, including your own.

Financial benefits aren't the only reason to buy a fixer-upper. Though you won't get as much freedom as with buying an empty plot of land, fixer-uppers still have a lot of flexibility in what sort of changes you can make. Even major additions and remodels can be done without needing to worry about building an entirely new foundation. If you have the means and the imagination, it's not too far off from being a newly designed and built home with a much lower initial investment cost. Even if you don't make too many or too significant of changes, it can be a learning experience if it's not something you've done before -- particularly if you choose to do some DIY repairs.

Photo by Magnus Jonasson on Unsplash