Are you thinking about investing in an older property? This can be a smart choice for a few reasons. First, an older home is often on the market for a far lower price compared with a new build. This means that it can be an easy way for new buyers to access the housing market when they can’t save a massive deposit.
This in turn ensures that the mortgage is a lot more affordable. It’s also a way to get a larger home for less with more space for a growing family, while still keeping to a reasonable buying budget.
An older home can also be a fantastic investment decision. You can buy it for less, fix it up and flip it on the market for a fantastic level of profit.
However, there are a few issues that you can encounter when making this type of investment. Let’s explore a few in turn and guarantee that you know exactly what to expect here.
We have already mentioned that an older home can be a cheaper purchase and this is absolutely the case. However, you do need to think about the costs in the long term. It’s important that you can afford to complete the necessary changes on the property.
You need to make sure that you are figuring out your budget before you commit to a purchase. It’s vital that you know how much work you will be able to complete yourself and where you will require the support of a contractor.
A contractor can be expensive and it’s important that they can work with what you have available to spend. Do be aware that you can use a loan to pay for changes to an older home. This might be worth exploring if you are thinking about this as an investment rather than a place where you and your family are going to live.
In terms of other costs you should also make sure that you are planning on paying for a full home survey. A professional surveyor is the only way to make sure that there are no nasty surprises lurking in the walls of a home like this you must be aware of.
Ideally, you should also make sure that you are buying the home at the floor asking price. The floor price is the lowest possible price that a home will sell for. Do remember, that owners of older homes are often in a rush to shift the property on the market. As such, they tend to be more willing to accept lower offers for their home.
A telltale sign of this will be if the property has already been completely cleared out of furniture. Do your research and find out how much homes of a particular age tend to go for in the location that you are currently exploring.
Next, you need to think about the key changes that you should be made to an older home. One example would be insulation. It’s quite common for an older home to have issues with the insulation and there are a few ways to correct this.
For instance, you can think about changing the windows. If you use a service like Renewal by Andersen Windows, you will be able to guarantee that your windows are made to a high level of quality and provide the right level of insulation that you need for your home.
Another way to fix the insulation issues would be to fill in any gaps, cracks, or crevices that exist on the exterior walls of the home. These could be big enough to let cold air into the property. Usually, you will be able to fix issues like this without the help of a contractor. Instead, it’s simply a DIY fix.
Wear and Tear
In terms of decor, you will probably need to make a few changes to the interior design of the property. Older homes are often completely outdated unless the previous owner took the time to change the decor regularly. It’s important to remember that older homes are either inherited or end up on the market once a person moves into long-term care.
As such, there’s often quite a lot of work to do to ensure that it looks fantastic. You must make sure that you take this into account when you are planning your budget for the changes.
Do be aware that older homes will have often sustained quite a lot of wear and tear over the years. For instance, there may be a few holes in the roof and this can lead to damp development around the property. One of the ways to deal with is by making sure that you are getting the roof checked from day one.
If there are any issues, then you need to make sure you are getting them fixed as quickly as possible. A problem with damp that has already developed can be quite difficult to fix. Particularly if it’s brought side issues like mold. If that’s the case, then you should think twice about moving forward with the purchase of the property.
There are a few issues that can lurk around an older home which could create health concerns. A key example would be asbestos. Up until the eighties, asbestos was used as the main insulator for properties. Walls were filled to the brim with asbestos to ensure that they stayed warm and cozy through the winter months.
Recently, reports have emerged revealing the dangers of asbestos. Various studies have linked the material with a wide range of medical conditions including certain cancers.
It’s worth noting that asbestos is only harmful if it is disturbed. As such, if you are planning to make very few changes to the home, there’s not much to worry about here. If however, you are planning to revamp and renovate the old property, the asbestos must be removed safely. To do this, you should think about hiring a specialist. Do be warned, this is always going to be an expensive change. It could cost as much as ten thousand to remove asbestos from a medium-sized property.
This isn’t the only health issue that could be lurking around an older property. It’s possible that there is lead paint on the walls. This should be removed to ensure that there aren’t issues that could impact the health of your children. Even a teaspoon of lead is enough to impact a child. As such, this will need to be removed before you start moving things into your new home.
It’s also possible that there are insects in an older home. This is often due to a low level of maintenance but some pests are more serious than others. If you have something like bed bugs in a home, then they can be a nightmare to get rid of. They often get left behind by the previous owners and it can be a problem you’re not fully prepared for.
It’s important that you can recognize the signs of an infestation like this such as skins or droppings and smears on the wall. If the home has been inherited, this won’t have always been cleaned up before the property is put on the market.
We hope this helps you understand everything that you need to keep in mind before you decide to invest in an older home. If you are prepared for the challenges, you’ll have far more chance of this investment being a terrific success for you.