Is it worth it to buy a used home?

BUYING a used home can be a real estate investment option. In doing so, one should be extra careful to look at the fine details since the parts and components of the home may have been worn out and are no longer functional. Listed here are the advantages, as well as the disadvantages of buying a used home.

Advantages

Buying a used home offers many advantages:

· Used homes are more affordable. The main reason people buy used cars is their lower acquisition cost. A four-year-old car would cost at least 30 percent less as compared with the price of a new one. A similar analogy holds true for used homes. The primary advantage of buying a used home is the lower investment cost required. Due to the economic depreciation of homes, they are cheaper to buy than new homes. If new homes sell for 20, 000 pesos per square meter of improvement, used homes can be bought for a fraction of new home costs.

· Used homes are located in existing communities. Used homes are located in existing communities with most of the basic necessities. These conveniences include grocery stores, schools and public transportation.

· Used homes bring memories of the past. Many of us are attached to the past. That is the reason we see a lot of people collecting Volkswagen cars as well as Beatles memorabilia.
The same is true with homes. One may want to have those old Vigan tiles and the very thick narra planks on the second floor that squeak each time you walk on them. Old capiz windows that constantly create noise during the storm season offer something not found in new homes. Old homes also help us remember the way it was when we were children.
Some fanatics even buy a complete old home, tear it down and build it in a different location.

· Used homes can be "loaded" properties. A used car will probably have three sets of seat covers, all of the gadgets like a CD changer and amplifier that were all installed by the previous owner. For a used home, it usually has all of the extras that cannot be found in a new one. This includes landscaping, curtains, window blinds, fences and the like.

Disadvantages

There is no such thing as a one-sided deal. If there are advantages into buying a used home, there are of course disadvantages:

· Used homes are more expensive to maintain. Lots appreciate but homes depreciate. In a used home, the electrical systems, water line and drainage systems get the first bout with wear and tear. With time, water lines leak, drainage systems get broken and electrical systems need rework to accommodate the additional load requirements.

· Used homes may have an outmoded style. Homes built decades ago possess the style and character of their time. This may include adobe stone accents, single-sloped roofs and open gardens with a single car garage. This style may appeal to some but are no longer the style being used in newly built homes.

· Used homes may have a bad layout. Examine old homes and you may see a four-bedroom house with a single bathroom. Large homes these days practically have a separate bathroom for every room. Purchasing an old home may mean that you may have to construct additional bathrooms to accommodate your needs.

· Used homes may not have new features. If modular kitchens, high-tech security alarms and Internet wiring are very important to you, these may never be found in a used home. Technology is slowly coming into our homes and the newer the home, the newer the technology that is built into it.

It may really be difficult to buy a used home for one may have to look deeper into the hidden things in order to have an accurate evaluation. It may be prudent to ask for the help of a professional, whether it be an architect, engineer or a real estate appraiser who will give a technical assessment on the property. Again, similar to buying a used car, one would feel a lot better if he or she brings along a mechanic before deciding.

Taken from an article in Inquirer Global Nation