It’s the classic argument of old vs new. Do you invest in something with history or go for the brand spanking new home? As with just about everything, there are pros and cons to both. For now, let’s focus on older homes.
Pros of Investing in an Older Home
Older homes can make great investment properties. They can often offer things that newer homes just don’t. For example, the number one pro for buying an older home vs a newer one is the location. Often times, newer builds are pushed out to the edges of the metro areas where there’s room to build. Because of this, these newer neighborhoods often don’t offer the convenience of shopping, dining, travel, and local hotspots like the older, more established neighborhoods do.
Another factor that can make an older home the more appealing option for an investment property is the initial financial piece. Older homes often don’t cost as must to buy as a newer build, making your initial cost and mortgage lower.
Cons of Investing in an Older Home
Many older homes need a little more TLC than newer homes. Older homes have older systems, including pipes, HVAC, plumbing, electrical, etc., which means the potential for bigger maintenance repairs. If you do go the route of purchasing an older home, be sure to have the systems thoroughly inspected and plan ahead for replacements and major repairs. Having a maintenance budget can help alleviate the stress of covering those big repairs.
When it comes it purchasing an investment home to rent, you may prefer something with old bones and a history, something in the heart of an older neighborhood. Or you may prefer a fresh start, all shiny and new! Either way, when making your decision, be sure to weigh the pros and cons when considering an older home.