The Pros and Cons Of Buying An Old Home
There’s a certain charm to old homes - the homely feel, the years of history and memories that make living in an old home more sentimental. It’s ideal, isn’t it? However, you should know that buying an old home have its risks and rewards. To make it easier for you to make an informed decision, I laid out the pros and cons of buying an old home.
Pros of Buying an Old Home
There are many advantages to buying an old home. Here are some:
Lower cost
Older homes usually have a lower cost, but it still depends on the home’s condition and location. However, generally, a modern house with the same size and in the same area still costs more money than older houses.
Prime Location
Old homes, more often than not, are built closer to the town center. Because of this, shops, schools, and other establishments are just within walking distance.
Larger Lot Size
Decades ago, homes were built at a time where land is still ample. Chances are older homes stand on lot areas much larger than newly-built homes. Buying an old home will give you more land.
Good Investment
Buying an old home is a good investment. Aside from a larger lot size, supply of old homes are now running out, since some of them are being torn apart or left to deteriorate. However, the demand is still there.
So, if you’re planning to buy an old house, make sure to talk to other people with similar properties in the area and ask if their homes’ value increased over the past years, and by how much.
Availability
An advantage in buying old homes is that you can move in immediately, if you don’t have plans to renovate it. You don’t need to wait for developer’s finishing touches, or experience delayed schedules. In some cases, the buyers would fall in love with previous owner’s style, and might strike up a deal to keep some of the furniture or accessories they like. Through this, you can save more money, and have good furniture as well.
Charm and Character
Because of the increasing demand for homes and the decreasing supply of property, home builders and developers build newer homes as fast as possible. This could mean that new houses might look alike and have same facilities, as opposed to old homes.
Old homes are built with the owner’s needs and wants in mind. There’s a certain charm and a different kind of atmosphere in old homes that you would not find in newer homes.
Opportunity to Increase Property Value
It’s a common misconception for buyers to think that buying an older home would result to lower returns in the future. However, if you plan on buying an older home, you have the opportunity to increase its property value!
You can increase an old home’s property value through renovation and adding improvements. You can add bedrooms, outdoor amenities, and improve the overall look and condition of the house. So once you want to sell it, its property value - and therefore, the listing price - would increase.
Cons of Buying An Old Home
To combat the advantages, you should also know the drawbacks of buying an old home:
Outdated
Older homes may have outdated heating, electrical, or plumbing systems that do not comply with modern building codes. Before buying an old property, it’s better to hire a professional to check the condition of the home to make that they are functional and safe. This would save a lot of time and money from renovations, should you decide to buy an old home that have many repairs needed.
Insurance Costs
Insuring an old home could be more expensive than if you insure a new one. Insurance companies know that old homes exhibit more risks than newer ones, with the possibility of old homes to have outdated electrical and plumbing systems and the stability of house’s foundation.
If you want to lessen the risks of buying an old home, here are two tips for you:
- Hire a buyer’s agent. They would represent your interests and provide advice on whether you should push buying an old property. They will also come in handy during negotiations, with their years of experience.
- Have a professional, such as an engineer or architect, inspect the home you set your eyes on. Ask them about the repairs the property would need. Discuss the possibility of a renovation and ask for an estimate cost. Your agent could use the list of repairs as negotiation point with the seller.
Roots
Old homes come with many memories and also old trees. These trees could present problems because of their roots. The long roots of old trees could grow in toward the plumbing systems and the foundation of the home, which could break it. Foundation work and replacing pipes can cause a huge dent in your wallet.
The Middle Ground
Diverse Neighbourhoods
Moving into an old house in an old neighbourhood can present an eclectic mix of neighbours. You might have neighbours that lived there for decades, a family that just moved, and other different characters. Before buying a property, get to know the neighbourhood more.
Hope that this could help make the right decision whether to buy an old home or not - after all, it’s who would give the go signal. If you want some more advice about property investments or buying an old home, please get in touch with me at 0402 909 727.