What Are the Pros and Cons of Buying an Old House?

The decision to buy a house is only the first of the many decisions you are going to have to make afterwards. The budget, location, type, whether to build a house or buy one and so on.

Since a resale market is a great place to benefit from discounts on property prices, here we shall take a look at the various pros and cons of buying an older house.

Why Should You Purchase an Older Home?

Affordable

In most cases, older or resale properties cost less than newly constructed properties. The difference in price ranges from 25% to 50%, depending on the location and age of the property. Even after taking the renovation charges into consideration, older properties usually still cost lesser than new ones.

Better Location

Older properties are mostly built in developed locations during a time when the land was sufficiently available. This increases accessibility and comfort of living.

Built-In Facilities

Basic amenities such as gas, electricity and water fixtures, maintenance, security, etc. are usually already fixed already in place by the previous owners. They might require repair work but it would also save you the time and money of having to start from scratch.

Tax Benefits

According to the Income Tax Act, in the case of resale houses, the buyer can avail of a tax exemption of up to 1 Lakh on principal EMI, as well as a tax reduction of up to 5 Lakh on home loan interest.

Why Should You Not Buy an Older House?

Age of the Building

It is advised to ensure that the house you buy is built within the past ten years because the returns from the house are directly dependent on its age.

Lacks Personality

The previous owners’ lifestyle and interests might reflect strongly in the house, which could take the new owners some time to get used to.

Renovation Charges

It is nearly impossible to avoid renovation and repair charges when you purchase an old house. The individual repairs might seem to cost cheap but the total could be more than you expect.

Low Insurance Coverage

Most insurance companies provide coverage considering the age of the house. This creates a problem for the residents in case of calamities.

On a final note, you must make sure to do the following things before you proceed with buying the property.

Evaluate the structure with the help of a Civil Engineer.
Check the health of the plumbing and wiring network.
Be aware of how much additional expenses might be required.
Ensure that there are no unpaid bills or penalties by the previous owner.
Get warranties for the appliances and furniture that come with the house, if any.
Explore the neighbourhood and acquaint yourself with the neighbours before moving in.
Check the legal documents of the property thoroughly.

In Summary

Aside from the fact that the pros of buying an older home outweigh the cons, it is still up to each individual to decide whether or not to purchase an older home.

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