Recently, real estate investors have been seeking for more brand new properties to make their rentals' list longer. While old houses were popular for decades, especially to individuals who enjoy rehab projects, the trend has shifted to buying homes that are only a decade old.
However, is a new home better than old properties?
Why a New Home?
Preferring a new home for investing purposes comes with several benefits. For beginners, repairs will not be necessary. Depending on the home's age, the usual major components inside include electrical and HVAC systems, which could always be kept in good condition.
Newer properties also look more updated, which are more likely to invite the present generation renters. Aspects like floor plans, finishes, and granite counters are the current norms.
When the condition is repair-free, this will mean less work in bringing in tenants for higher rental rates.
Why an Old Home?
While older properties have higher tendencies to not have stainless steel kitchen appliances and granite countertops, it has its own set of perks. Older homes, for instance, are often situated in well-established neighborhoods with local amenities like public transportation, parks, restaurants and shops. Older properties, if the tenant wants, can be renovated to bring forth a more modern look. While customization is possible, older homes, even after renovations, retain their distinctive character.
Which should you prefer?
What is good for one real estate investor may not hold the same weight for another. Therefore, the decision mainly depends on a person's goals and personality. While an individual can save more with older home purchases, the expenses for renovations and repairs can be more than the amount you have been able to bargain it with.
In the same way, if you choose to buy new homes, no renovation costs are considered at the time of purchase. Hence, an older property that has been updated fully can be the best option.
