Why An Older Property Could Be The Investment You’ve Been Searching For
New isn’t always better, especially when it comes to homes.
Not convinced? Hear us out.
Whilst it might not have all the sparkle of a brand new build in a master-planned neighbourhood, we believe older homes have the potential to be one of the best investments you’ll ever make.
Pros Of Buying An Older Home
Opportunities to increase value - When you purchase a new property, you open the door to a whole heap of potential. With a few well thought out renovations, you can rapidly increase the value of an older home, resulting in a massive return on investment. Kitchens and bathrooms are two areas in particular to focus your efforts.
Better location - As our populations continue to grow and the cities fill up, it becomes harder and harder to find land for a new build. This means that most will lack the proximity of older, established properties. Older homes are typically closer to the CBD, have better access to public transport, amenities and shops. All for the simple reason that they've been around longer.
Ready when you are - This is a big one to consider with the current building delays, labour shortages and unending material price increases. Older homes are already built. There’s no tradies to manage, deadlines to miss or waiting 5 weeks for the insulation to arrive. Once your contract settles, it’s time to move in.
Cheaper - If you’ve got your mindset on living in a certain area, you can get a whole lot more house if you're willing to consider older properties. Not to mention, with the money you save you can put it towards personalised renovations to make the property perfect for you, whilst also increasing its value.
Larger lot sizes - Not only do you get more ‘house’, but older properties typically sit on much larger blocks. With a large lot comes options. Want a pool down the track? Or maybe you want to add in a granny flat or subdivide. Many new lots are simply too small to accommodate these additions both legally and logistically, so make sure to think about what your ideal future looks like.
Safer Investment - The easiest way to tell the future is to consult the past. As time has taught us, newer properties are generally the first to get hit when the market moves down. Established properties seem to weather the storm much better and maintain their value. They also benefit from past sales data to back up their suggested price, as opposed to the speculation that guides new builds.
Cons Of Buying An Older Home
Whilst that is a pretty impressive list of positives, older homes aren’t perfect. It's important to recognise that they do come with their own set of challenges.
Lower tenant appeal - If you’re purchasing a property as an investment property, you need to consider what tenants are searching for. We’ve found that renters tend to prefer newer properties. As they are unable to renovate the home themselves, many tenants prefer to move into somewhere that is perfect as is. There’s also less chance that things will go wrong in a newer property, making them all the more appealing.
Lacking ‘mod cons’ - Ducted aircon, exhaust fans, a plentiful supply of powerpoints, etc, some things just weren’t on people’s minds (or didn’t exist) when these older properties were built. And while some of these things can be retrofitted, the costs can vary widely depending on the building material used. This brings us to our next point.
Asbestos - A lot of older properties are made of this now banned building material. While it is safe if undisturbed, having asbestos in your home means many DIY renovations are now off the cards and will require pricey professionals to undertake. Seriously, even hanging a picture with a nail is a no go. You don’t want to mess around with your health.
Leaks and structural issues - Given time, the harsh Australian climate eventually takes its toll on most structures. Whether this is cracking foundations, leaks in the roof or some other fun surprise, you’re much more likely to experience these sorts of events in an older property. That’s why a thorough building and pest inspection is crucial. This will empower you to differentiate from something that just needs a bit of love to a potential money pit that could cost you thousands and thousands.
The most important thing to remember when buying a property is to choose something that works for you.
Older homes can be a great investment, but it all depends on your situation and needs. If you’re feeling unsure or need a hand working out your best course of action, get in touch with the team at Champions In Real Estate today.
Our industry experts have countless years of experience and would be more than happy to help guide you through your decision.
Give us a call now!