I am new to real estate. I plan to purchase a property from where I am right now, and live there myself for ~2 years while finishing my degree. After ~2 years, when I am ready to leave here, I hope to leave this place as a rental or Airbnb investment. I found a property that looks good in many aspects. However, the building itself was built in 1945. For real estate investment, how much does the age of the house matter, is this a horribly hold house? and how should I take into consideration the age of the house in general?
Thank you very much for any input!
That depends very much on your market. In my county, there are a ton of older homes and hardly any newer construction, so age isn't as big a factor as it is in, say Orlando, where there's a ton of less than 10 year old houses.
Even a county over in Hillsborough, there are a TON of new builds, so even a 4 year old house has lost value. While in historic St Pete, 20 miles away, there are million dollar 3/2s built in the 20s.
@Dan Maciejewski Thanks Dan.
I am in Ann Arbor, Michigan. I am wondering if you may know (or anybody else may know) the market here?
Sorry, that's the polar opposite of my market! It looks like most of your homes are older, too. From the little I know of Ann Arbor, I think that's kind of the charm of the town.
If you aren't working with a Realtor, you can find one that's knowledgeable and ask them, too.
A quick Google search found this from 2014: https://www.a2gov.org/departme...
Featured snippet from the web
48 years old In Ann Arbor, the average age of housing is 48 year old, and 12% of housing in was constructed after 2000.
@Hongling Lu what brings you to Ann Arbor? Studying at the University? I’m a LS&A grad from 2007.
I’ve owned a few properties in Ann Arbor and in the surrounding area. A house built in 1945 isn’t super old in my book. In fact, by my amateur eye, it seems houses improved by the tail end of WWII particularly with regard to foundation construction. I’m sure there are builders on this site who can explain it, but around that time it seems foundations started being built deeper using either poured or block concrete instead of stone/mortar.
In any event, a good home inspector is a valuable resource and there are plenty around. Hit me up if you need any help.
@Joshua B. oh wow. Go Blue. I am doing my PhD at College of Engineering. Thank you very much and I'd definitely like to connect and ask you more questions. Thanks.
Age of the home will affect your maintenance costs. For example, houses built in the 40’s-60’s in the area will likely have to have their original sewer line replaced if it has not been done so already.
Ann Arbor’s city council has also been tossing around different efficiency standards for homes. Older homes are likely to have little or no insulation, so that could be an issue for you if new ordinances are passed. You can google the topic and find some recent articles.
I agree with @Joshua B. that a 1945 vintage house is not necessarily an issue for A2. If you were looking for something newer, then you would likely need to look in the surrounding towns.
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