Old buildings can be a profitable venture for you if you are taking all the right steps. Normally people avoid buying old constructions because they lack modern facilities. If someone is looking for a house, they would never buy an old house, instead, they would prefer a house that has been constructed recently, so that they can benefit from the latest living luxuries. However, only an expert real estate investor can see a gem in old construction.
Here are the top reasons why you should look for an old constructed house for your investment, instead of buying a newly constructed one. Because of these benefits, many real estate investors keep their eyes open for old houses on sale.
Old homes are located mostly in the best locations. This is mainly because the old settlements were close to the city hub. New housing societies are being created in the city suburbs that increase the traveling time for schools and offices. Therefore, people who have to go to the city daily want to live in the vicinity.
Old daily can provide you with an ideal location that is close enough to the city, but also a great residential place.
Because of their old construction, and lack of energy-efficient systems, old houses have a much lower purchase price as compared to their new counterparts. If you want to earn profits from real estate, the trick is to buy low and sell high.
You can buy old houses at a much lower price, and with little renovations, such as getting a commercial roofing contractor to redo the ceilings, or renovating bathrooms and kitchens can increase the value by renovating the same house to many folds.
Old houses have a larger per square foot area as compared to new homes. This is mainly because land markings in older days were larger. Today, due to limited space, the plots are getting more compact and hence their sizes are also reducing.
The 1 Kanal house constructed in the 1980s will have a larger per square foot area as compared to the Kanal house constructed in today’s world. This allows you to get more area for less money. Whereas, if you buy a newly constructed house in a fairly new housing society, you will get a smaller per square foot area.
Great Investment Opportunity
Old houses can be a great investment opportunity for real estate investors. You can buy a nearly-demolishable house at a very cheap price. You can get demolition the house and construct an entirely new one. This will still be a cheaper option than the new homes.
If you do not want to tear down the entire house, fixing up the major issue such as plumbing and wiring problems and renovating core areas such as washrooms and kitchen can give you a fairly better price for the house. You can also use the property to generate rent, which can be a continuous source of income with little investment.