What are the disadvantages of buying a very old property?

[flygo]

Hi there

I am recently looking for my 2nd IP. There are 2 units I am interested in. But both of them are 30+ years old.

As a newbie investor, I am just wondering what are the disadvantages of buying an old property?

Things I can think of:
- building may need more maintenance from wear and tear (meaning higher strata fees)
- little depreciation (meaning less tax return)

Anything else?

Thanks.

 

[MRO]

30 years old isn't really that old for a house. Houses built from the 70's onwards are of a similar construction type to new houses generally.

Your points regarding maintenance and depreciation are the only ones I can think of.

I have two properties of this age. No problems with either but I would like some depreciation deductions. The upside is a reno to slightly modernise can add value. I rendered one of the properties and I have been asked if the house is newly built!

 

[The Y-man]

30 years is "near new" - when you compare it the one we had that was almost 100 years old!

When it gets to 100 years:

• Electrical wiring
• Electrical switches
• Fuse box
• Rotting timber
• Leaky roof
• Unsafe renos/extensions/works by generations of previous owners
• Plants that were "little shrubs" that have grown roots in to drain pipes (and good old clay ones at that)

The Y-man

 

[Tano]

My IP was built in 1970. Last december i got a large water bill and a $2700 Gas bill since the hot water copper pipe under the slab split and went unnoticed for 2 months. After smashing up half the bathroom for a repair i got another huge water bill last week since it had sprung another leak 1m away. Now i have to rip out all the copper pipe underneath the slab, re plumb the piping to the toilet, laundry, bathroom (shower, bath, vanity) and re-tile (floor and wall) all these rooms.

Insurance didnt cover anything except the cost to repair the leak.

 

[chilliblue]

If buying a newer property in NSW, do not be fooled in thinking that they are better built than the older ones.

Remember self certification has seen loads of instances of poorly built properties.

So long as you undertake a thorough building and pest report you should be fine in what ever your purchase.

 

[INVSTOR]

I was going to mention plumbing. I had a 1966 house with old clay pipes. Over time they can crack and get full of tree roots. Having a shower or washing up, the water wouldn't drain away. Smashed up bathroom floor to access and replace pipes. Not sure when they stopped using clay pipes. If their is no access under the house it can be exy to replace. Still exy with access. My sis has just had some issues with 60's house and her paving and concrete driveway will need to be dug up to fix properly.

 

[devank]

My IP was built in 1970. Last december i got a large water bill and a $2700 Gas bill since the hot water copper pipe under the slab split and went unnoticed for 2 months. After smashing up half the bathroom for a repair i got another huge water bill last week since it had sprung another leak 1m away. Now i have to rip out all the copper pipe underneath the slab, re plumb the piping to the toilet, laundry, bathroom (shower, bath, vanity) and re-tile (floor and wall) all these rooms.

Insurance didnt cover anything except the cost to repair the leak.

Some water companies refund if it is undetectable leak. You may want to try your luck.

 

[Spades]

Check the body corp minutes and see how active the owners are,funds,sinking fund etc and what has been spent to date.Personally i prefer more owner occupied ratio to renters.

I passed a block 2 streets away and there digging up the whole driveway etc and i'm thinking ******.

Seeing no one gives a rats about body corp meets where i live,i'm going to town next year at the next body corp meet and get the place rendered,fenced,gated etc....

Who knows they may sell up or turn up at the next body corp meet

 

[Ideo]

I was going through a mental checklist of heritage, wiring, plumbing etc

I wasn't expecting to see 70s and very old in the same sentence.

I must be getting old.

 

[Tano]

Some water companies refund if it is undetectable leak. You may want to try your luck.

I got part of the water bill back first time, but nothing for the gas bill or cost to re-tile bathroom. Alinta Gas dont care if there is an undectable leak thats due to normal wear and tear. Plumbing bill equalled the Insurance excess

 

[Oscar]

your post made me consider the age of some of my properties. Two of my apartments in Randwick were built in 1938. They are solid as a rock and I have had no problems in my 14 years of ownership. I have a house aged 101 years old and made of weatherboard. Apart from replacing the odd rotted board I have no problems with this either.

 

[The Y-man]

I wasn't expecting to see 70s and very old in the same sentence.

Hahahah..... same here.


The Y-man