When you think of real estate investing, new properties probably come to mind—new homes and commercial buildings, maybe condos and townhomes, definitely not older single-family homes or pre-war apartments. But there are plenty of great reasons to consider older properties as well. They can be just as profitable, and in some ways, they often bring more joy and excitement than a typical property.
Understandably, purchasing an old property can be daunting. Real estate investment always comes at a high cost. Yet, if you are looking at buying an older house, you could face high renovation fees to meet the standards of living conditions. However, a historic home can drive a high return on investment if you know how to care for it:
- You can rent it out as a movie set
- You can turn it into a quirky Airbnb
- You can sell it for a profit
So, how do you make sure you can maximize your investment?
Location, Location, Location
Location is essential when investing in an older property. Not only does it affect the price of the property, but also how long you will be able to rent or sell it for. A house with easy access to public transportation, shops, schools, and parks will be worth more than one without. And while some people may want a home with charm, such as a fireplace or bay windows, nobody is ready to live in a property that is not in a desirable location, regardless of how charming its antique features may be. So, location is still kind when looking at a property’s potential.
Tasteful Technology Upgrades
Smart home hubs are a great way to bring modern technology into an older property. Plus, they’re an excellent investment because you can use them with newer appliances, so your smart fridge will still work even if the original one doesn’t. They also make it easier to control all of the lights in your house with just a few taps on your phone screen.
IoT solutions can revive the atmosphere and comfort inside an old property without necessarily impacting the decor. For instance, upgrading the doorbell and camera can make the house safer but needs no physical change to the facade. Smart thermostats and sensors can also be a neat addition.
Fixing The Old Rather Than Replacing
Modern houses are easier to maintain than others. This is because they may have more modern systems that can be easily fixed with the right technology.
So, in comparison, a house with an old plumbing or gutter system may lose its character when the system gets replaced, for instance. But you can still find expert builders with the right tools to maintain older systems, such as contractors using power-operated pipe threading machines to replace damaged pipes according to your measurements. This ensures you don’t have to worry about upgrading the whole system when you only need to fix one thing.
There is no denying that old properties can be expensive. But you can make them profitable, valuable, and desirable by focusing on the needs of tenants or potential buyers. Everybody loves the antique charm but wants to maintain comfort and convenience. So, approach your real estate investment with these priorities in mind.