02 9522 3000 john@hunterwood.com.au

Pros and Cons of Buying an Old Property as an Investment

There is a certain allure to buying an old property; a whimsical proposition similar to the charm offered by an antique. There is history within those walls; aged perhaps but rich in character and personality. But beyond the romanticism lies the reality that buying an old home is a decision that has its share of risk and rewards. Here are the pros and cons of buying an old property as an Investment: Pros:1. Lower Acquisition Cost Generally, buying an old home should cost you less compared to a new one. Of course, this is not always the case. While the house itself is a depreciating asset, the land on which it stands is not.The final cost of the old property would depend on the location, its overall condition and the average selling prices of similar houses within the area.If you did a comparison, you would find that a modern 3 bedroom house would be priced much higher than an older home with the same number of rooms. 2. Prime LocationMany older homes were built at a time when the area itself was in its early development stages. They are usually located closer to the commercial and business districts of the city which are key contributing factors to the value of the property.The home itself could be located within proximity of schools, small shops, supermarkets, banks and public transportation. These amenities not only provide convenience but also generate more interest in the property despite its age.  Many older homes were built at a time when the area itself was in its early development stages. They are usually located closer to the...