What you need to know if you're buying (or selling) an older property

Older homes are very popular for a number of reasons, including the fact that they are usually more accessible priced and, if unrenovated, are often great fixer-uppers that buyers can turn into their dream homes - but they can also turn into a nightmare investment if not careful.

The most common property mantra is ‘location, location, location and the advice one often hears from estate agents is that it’s better to buy the worst home in the best area than the best home in the worst area. 

And this adage is usually correct - if the right property is bought in the right suburb, it can be an excellent investment because you can buy in a higher value area than you might otherwise be able to afford and, through upgrades, significantly increase the value of your initial investment.

It also affords you entry into a stronger market than you might be able to otherwise be able to enter, so that when the time comes to upgrade, you are on a far better footing all round.

Other notable advantages to buying an older home include:

Larger erfs: Generally, older homes were built at a time when land wasn't as scarce or expensive and they tend to have larger gardens which not only adds to the property’s value it affords the resident more space and better outdoor living as well as better privacy from neighbours.

More character: Many of the newer homes being built today are more generic in nature without any of the ornate finishes that are found in older properties. As a result, they tend to look alike and have similar features whereas with an older house you will have a more unique home, and often with a lot more charm.

Solid construction: All too often newer homes are built with inexpensive, builder-grade materials; so whilst they are still structurally sound, the quality isn’t as high or durable. In older homes, the materials used at the time were often created to last and better withstand wear and tear.

However, there are more than a few potential pitfalls when buying older properties and, unless you know what to look for, the benefits can come at a much higher price than you are willing – or able – to pay, in terms of money, time and stress.

And, as buying a home is already a daunting process with so much information to consider and factors to weigh up, it’s very easy to miss important details when you are viewing a property – especially if you really like what you see.

Whilst certain imperfections are minor and easily remedied, there are a number of issues that cannot be overlooked.

The best way to ensure that you don’t overlook a critical problem is to make a list of the most important factors to check and questions to ask when viewing so that you can make an informed decision based on facts.

1. Foundation/structural faults: The foundation is not only one of the most important aspects of a house, it’s also one of the costliest to repair so although minor cracks may only be a sign of settling in the home, large cracks could be indicative of serious structural problems and they need to be thoroughly investigated.

And don’t forget to check door frames in the house because when multiple frames don’t appear to be square, it’s a sign that a home is possibly experiencing structural problems. If you’re unsure, ask for a structural survey before proceeding.

2.Poor Drainage/Grading: Most water problems in a home can be directly linked to poor drainage or grading but this is not always easily detected. The most obvious sign of poor drainage is pooling water, but another is a bouncy bathroom floor that can be evidence of hidden damage such as leaking shower drain.

It also bears further investigation if the garden has mini lakes or continually muddy patches and rising damp is often best spotted on the exterior so look for bubbles on outside walls as this could indicate that the damp course was not put in at the building stage as it is much more difficult to fix later.

3.Electrical wiring: Faulty wiring can cause a host of problems, not least house fires which aren’t as uncommon as one would like to believe, especially in older homes that often have a more limited supply of power and fewer electrical outlets than modern homes. Also keep an eye out for exposed electrical wires, which are often the result of DIY repairs.

4. The roof: Generally, roofs have a lifespan of around 20 years so always ask the age of the age and if any recent repairs have been carried out. Misaligned or cracked slate tiles can be tell-tale signs of potential roof leaks so it’s worth climbing up to see where the water goes in heavy rain. If you’re unsure, have the roof professionally inspected.

5. Poor neighbourhood condition: When you’re buying a home, you’re buying more than just one erf and structure, you’re also investing in the neighbourhood and buying a home in a suburb that is deteriorating can be a costly mistake and significantly diminish return on investment. Look out for signs such as boarded up properties and a high number of vacant homes or shops in the area.

Over and above these main issues, there are a few other problems one can encounter in an older property which could cause headaches down the line, and become very costly at the end of the day:

1. It’s important to ensure that the pool isn’t leaking and it’s not enough for the seller to assure you it’s only topped up once a week. Ask to see the water bill and, if necessary, ask for a structural soundness report on the pool.

2. Poor water pressure can also be an issue in older properties and you don’t want to start each day cursing your way through a trickle of a shower.

3. Also, if there is a wood-burning fireplace, find out what the extraction is like as you don’t want to smoke out your family when trying to keep them warm in winter.

4. And bear in mind that older homes usually have standard doors and some of your oversized designer furniture may only fit through larger sliding or French doors. It’s also important to understand the difference between an old and a heritage home if you are planning extensive renovations.

Heritage headaches

The general rule of thumb is that homes built before 1990 are considered older homes but if it’s older than 60 years it could well be a heritage property in which case you might encounter significant restrictions regarding the alterations you are allowed to make to the property.”

If you are in any doubt, rather commission a professional property inspection before you put in an offer to purchase.

An old house may come with work, but if the basics are sound, it can also be a sound investment. Just make sure you understand exactly what you're signing up for before going through with that purchase.