investing in an old property

[Apri1]

Hi everybody,

I`m newbie in investing...

Is it worth investing in a property that is more than 20 years old or better find a newer
house? Both in the same location.
Is there difference in a value appreciation of old and new houses?

Thank you.
--
Dmitri

 

[Al Verwey]

QUOTE (Apri1 @ Jun 27 2010, 10:58 PM) Is it worth investing in a property that is more than 20 years old or better find a newer
house? Both in the same location. Is there difference in a value appreciation of old and new houses?

Dmitri,

20 years old is not much of a factor. One advantage is that the neighbourhood is more mature, such as large trees, which make the property more attractive. On the other hand, a 20+ house will likely need some redecorating. The neighbourhood will probably appreciate at the same rate unless there are some substantial differences between properties other than size.

Your main focus should be on following the REIN system. If the neighbourhood and town fits the system, then look at which house is more ideally situated. Of course, if it is your intention to rent it out, then you need to do some research to determine typical rents for the ares.

Al Verwey
Penta V Holdings
Newmarket, ON

 

[Apri1]

Thanks Al

We just started using ACRE system and trying to define area we will be investing in.

QUOTE (AlVerwey @ Jun 28 2010, 01:25 AM) Dmitri,

20 years old is not much of a factor. One advantage is that the neighbourhood is more mature, such as large trees, which make the property more attractive. On the other hand, a 20+ house will likely need some redecorating. The neighbourhood will probably appreciate at the same rate unless there are some substantial differences between properties other than size.

Your main focus should be on following the REIN system. If the neighbourhood and town fits the system, then look at which house is more ideally situated. Of course, if it is your intention to rent it out, then you need to do some research to determine typical rents for the ares.

Al Verwey
Penta V Holdings
Newmarket, ON

 

[RedlineBrett]

I have seen 60 year old houses that were very very solid because they had been well kept. There are 3 year old houses on the market that I wouldn`t take for half of their asking price.

Usually older properties are in the best locations and have the biggest lots. You have to be concious of what a tenant from 2010 is looking for - may not be ok with a 650 ft^2 home... which was all they built before the townhome was invented

Kitchens need to be big enough to fit appliances of today and the living rooms need to be able to accomodate the big TV`s everyone wants.

Don`t worry so much about the age of the property. Be more concerned with the condition. Get a good inspector familiar with older homes and follow up on the issues he/she finds to educate yourself on the common issues properties of each vintage typically have.

 

[Apri1]

Found this http://myreinspace.com/public_forums/Real_Estate_Discussion/62-16748-How_old_to_go_for_a_beginner_thats_not_a_handyman.html

Thanks guys, this is very helpful forum!

 

[housingrental]

I like my post in the link you provided

I`ll add - are you investing in Richmond Hill? What area?

 

[Apri1]

Yes we are considering Richmond Hill, Vaughan.
I`m still doing myresearch ...QUOTE (housingrental @ Jun 28 2010, 03:26 PM) I like my post in the link you provided

I`ll add - are you investing in Richmond Hill? What area?

 

[housingrental]

Consider choosing a different area

Unless you have big $$$ behind you, are willing to take risks, and can burn through cash.
In which case go buy up a few 50`s bungalows on large lots and pray they`ll be worth for infill`s someday than you`ve paid and rent them at a lost.

Not many other viable options.

QUOTE (Apri1 @ Jun 28 2010, 06:00 PM) Yes we are considering Richmond Hill, Vaughan.
I`m still doing myresearch ...

 

[Apri1]

QUOTE Consider choosing a different area

What would you suggest? I think Vaughan in the top 10.
I don`t want to go too far from the place I live.

 

[housingrental]

April1 I suggest re above you consider choosing a different area. Or speculate on what will be cash flow negative rental properties with standard leverage.