Handy-man special can be a real bargain

If it's well done, you'll get all the money back
Apr. 20, 2006. 01:00 AM
PAUL IRISH
STAFF REPORTER

If you're looking for a house in an established area with some real character, don't buy the best one on the block, buy the worst.

It's advice many real estate agents give to first-time homebuyers who — unlike their counterparts in new subdivisions — don't want to wait 30 years for their trees to mature, but still can't afford to pay top dollar.

The theory is simple: Any renovations or refurbishing will more than pay for themselves as the worn and neglected home is brought up to the loftier neighbourhood standards.

A $250,000 fixer-upper could eventually fetch $400,000 in the right Toronto neighbourhood with the purchase of a new $40,000 kitchen, two new bathrooms totalling $30,000 and perhaps another $20,000 to paint the walls, refurbish the floors, install new windows, put on a new roof and make over the gardens.

It's a lot of money but you'll come out ahead with more coin in your pocket as the value of your newly refurbished home is pushed up by the market.

But it's not a slam dunk, as anybody who has undertaken renovations — big or small — will tell you. It's even more complicated when the owners have small children, as your home becomes a major construction area with debris, dust and tools.

Renovating isn't as easy as it's sometimes made out to be on the makeover TV shows. You might have the money, but do you have the time? If you have the time, do you have the expertise?

Dean Artenosi, a developer and president of Renosolutions, a division of the Arten Group of Companies (http://www.renosolutions.ca), says he deals with many first-time homeowners.
A lot of people try to do renovations themselves, he says, but it has a way of coming back and biting them. With time being the "new currency," he advises against it.

"I admire the ambition that many people have, but it's stressful just being in a home that's undergoing renovations, let alone doing the actual work. It can be a very trying time and we do our best to get it done and get out."

Chris Willerton, 33, and his wife recently purchased a home near Woodbine and Mortimer Aves. in Toronto and immediately put in a new main washroom.

"When we first saw the house, everything was there except a suitable washroom," he says. "Instead of continuing our search, we decided we could put in a new one."

Willerton says he's good at basic jobs around the house, but they decided to spend about $20,000 on a professional contractor.

"I know my limitations and we decided we wanted some real quality out of this," he says.
Willerton is confident he'll get the $20,000 back and more, when the house is sold.