Buying old houses is now one of the most trending issues in real estate, next to the news on how people are now preferring to buy tiny homes.
In Australia, one listing agent advised potential buyers to consider five things before deciding to spend millions of dollars on a vintage chic property.
The first thing to consider when it comes to buying a vintage and unique house is the limitations on house renovations. Time limitations. Potential buyers should be aware of the time frame that goes with revamping the house. They should take note that it can't be done immediately. According to Domain, the owner should consult an experienced heritage architect or heritage builder before thinking of doing renovations on the property.
"It may not be possible to have that extension or carry out those interior and exterior alterations," said Tony Smith, City of Sydney Council urban design and heritage manager.
He added, "Keep your original front fence -- particularly if you own a terrace. It's a crucial component of the heritage significance of both your house and the street."
Smith also mentioned avoiding alterations in the heritage houses that are built on face brick, it "destroys the original design."
Second, the possible maintenance cost needed for repairs for the unique home. Domain stated that repairing a vintage house can be more expensive and time-consuming than the more recent ones considering the age of the property. The price goes higher based on the designs of the house. The more unusual and intricate it is, the higher the price.
Third, the land value, construction costs, comparable houses in the area and accommodation features as well as the unique elements of the property. This part is the trickiest part in terms of property evaluation, said WBP Property chief executive Greville Pabst.
"The opinion of the valuer becomes more subjective, and if that's the case the valuer tends to be more conservative," Pabst said. He added that the value of the property is somewhat like the depreciating value of the old car that quick.
"Often these homes are over-capitalized, they are built for a particular vendor but those characteristics might not appeal to anyone else ... There are types of homes that add value because they have charm -- from the Victorian era, 1900s Federation homes, and going through to art deco, Californian bungalows, and even 1960s houses have that retro appeal."
Fourth is like a warning. The same source stated that these types of houses might take longer to sell compared to the usual properties listed for sale. "In many cases, buyers tend to loathe these mock homes -- like Tudor or Georgian style -- I just don't think it works," Pabst said.
Fifth and the last thing to consider is the difficulty of getting a new home loan with these vintage homes. The bank may give 80 peercent percent of the value of the standard house but for the unusual ones, it may have a different story. It might be lower.
Pabst said, "I think there needs to be caution because if a home is of a specialized nature, a bank wants to be sure that it can get its money back if it has to take possession of the house."
In summary, Smith advised anyone who would like to own vintage or unique houses. If they don't like to own one, they simply don't have to buy one. If they like, they have to weigh the cons as well rather than seeing the pros all the time.
"Old houses have a number of benefits: well-proportioned rooms, original architectural details, acoustic privacy and natural ventilation. However, a lot of people simply prefer modern open-plan living."
Smith added, "If that's what you like, you can save yourself time, money and heartache by just buying a newer house that doesn't need a lot of unrealistic, expensive structural interventions."
