4 Benefits of Buying an Older Home

By: , Contributor

Published on: Mar 11, 2020

When it comes to real estate, newer doesn't always mean better.

It's common for house hunters to focus their efforts on finding homes that are new and modern. And there are plenty of benefits to buying a recently constructed home. For one thing, you might save money on repairs, at least initially, thanks to that home's newer features and components. And many newer homes today offer open floor plans, which may align with your taste.

But despite all that, it could still pay to buy an older home rather than opt for a newer one. Here's why.

1. You might save serious money on its purchase price

Because so many people set their sights on newer homes, owners of older homes often have no choice but to list their properties for less. That could work out very well for you as a buyer, especially if you're on a tight budget. In fact, opting for an older home could help you get into a neighborhood that's generally out of reach financially.

2. Your property taxes may be lower

Homes are assessed based on their market value, so a house that sells for less could also result in lower property taxes. Furthermore, tax assessors tend to assign value to updated features like high-end countertops or fixtures. If your home is older and doesn't have these features, an assessor will have a harder time hitting you with a higher assessment.

3. You might enjoy unique features that other homes don't have

Many new homes today are built in clusters or developments. The result? They largely look the same. One major benefit of buying an older home is having a living space that looks and feels different. You may not have the same open floor plan or Jacuzzi tub in your master bathroom, but you might instead enjoy unique crown molding, charming bay windows, and a clawfoot tub that's just as comfortable as a more modern soaking tub with jets.

4. You might get higher-quality craftsmanship

A lot of the homes constructed today feature builder-grade materials that not only make them look cheap but also degrade easily, resulting in added maintenance and repairs. One final benefit of buying an older property is that you may be privy to better craftsmanship and materials. And that, in turn, could save you money with regard to upkeep. Or, to put it another way, if you buy a home that's managed to hold up for over 100 years, there's a good chance it will remain solid for 100 more.

Is an older home right for you?

To be fair, buying an older home has its drawbacks. You could get stuck with dated appliances and a heating and cooling system that aren't energy efficient. You may also find that an older home doesn't quite meet your aesthetic needs. But if you're the type who appreciates a home with character, it could pay to look at the older homes available in your target neighborhood. You may find that you not only score a great deal but snag a home that truly stands out.

Better Returns - half the volatility. Join Mogul Today

Whether over the 21st century, the past 50 years... Or all the way back to more than 100 years... Real estate returns exceed stocks with SIGNIFICANTLY less volatility! In fact, since the early 1970's real estate has beat the stock market nearly 2:1.

That's why we launched Mogul, a breakthrough service designed to help you take advantage of this critical asset class. With volatility spiking, Mogul members have been receiving investing alerts with projected rates of return of 16.1%, 19.4%, even 23.9%, and cash yields of up to 12%! And these aren't in some 'moonshot' penny stocks or biotechs, but more stable multi-year real estate developments that don't see their value swing on a daily basis like the stock market.

Join the waitlist for Mogul here and receive a complimentary 40-page guide on a NEW way to build wealth. Join waitlist now.

The Motley Fool has a disclosure policy.

Popular Articles On Millionacres