Profile picture for gsaahi

Is it wise to buy a house of 7 yrs old when it is bought for investment purpose?

We are planning to buy a house in Champaign,IL. We recently saw one house which is 7 yrs old. We are confused whether to buy or not because we might move from this place after 5-7 yrs and then the age of the house would be 12-14 years. What would be the appreciation of the house. Please advice if it is wise to buy a house of 7 yrs old when it is bought for investment purpose.
  • July 13 2010 - Champaign
  • 0
    0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

Answers (7)

Hi gsaahi

I have a great answer for you!!!!!  It is definitely the best buyers market in many many years!!!!  Homes are selling for well below market value, mortgage rates are at historical lows, sellers are getting very driven to sell with an inventory of similar homes in the area.  There is a lot of competition for you the buyer to be the one to buy their house.  Many, but not all will give concessions the may not have normally made in selling their home.  I certainly would not encourage anyone to take advantage of another but there are great houses available, over 2000 in our MLS. 

As for only keeping the home for 7 that is not a problem.  Although homes values have fallen slightly here in the midwest, it is not inconceivable that you would have a fair rate of return on home value, especially after 7 years.  Along with the lower interest rates in would be a great time to buy a home in which you could pay down additional interest along the way so that when it comes time for you to sell you will have a greater return.  You must consider this opportunity cost available to you.

Unless the entire housing market collapses, you can and likely will make money on a venture of this nature and in the case of so many homes to choose from you can pick up a great deal!  Contact me if you need any more assistance!
  • August 25 2010
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

It's not always the age of the property, but rather the abuse that it withstands.  Homes require upkeep and if that is not given age becomes a just another factor.  I have seen two year old homes that have been absolutely trashed from pure carelessness.  It has been amazing to see how much damage can be done in such a short time.  This is also the case of some of the newer construction homes that are falling apart due to poor construction.  Always research your local builder to see what others are saying about there work.  When a home is just thrown together your bound to have a problem sooner or later.

-Sean 
  • July 15 2010
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

It depends on the market...ask your real estate agent to run current comparisions for homes and neighborhoods.....in addition you will have a home inspection so the inspector will tell you if the investor did i good job with any remodels.  So investor or not should not matter.
  • July 14 2010
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

It really does depend on your market. There are some areas where homes are 100 years old plus such as hyde park here in Cincinnati and the homes are very expensive. There is NO new construction. It just depends on your market and values. Ask an agent in your area so that you stay within the guidelines for your profitability. If all the other homes are new construction and a totally diffrent style then you may have issues.
Good luck!
  • July 14 2010
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for Ofe Polack
The condition and location of the property is more important than the age.  If you take care of the maintenance and update as necessary, there should be no problem.  If you are planning on selling within a 5-7 years, keep that in mind so that you do not do any remodeling that will detract buyers.  Good luck!
  • July 14 2010
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for Mr Caveat
lol 14 years old?  most people wouldnt give a second thought buying a 50 year old house.

the thing about home ownership is that you need to take care of things. expect to need a new water heater every 10 years, a new roof every 25 years, etc... but if you take care of it, it will serve your children and your children's children if you keep it.
  • July 13 2010
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for wetdawgs
Seven years old is young!   A well built home can give you >100 years service.   (The key phrase is "well built" - don't buy shoddy construction of any age, even 0 years)
  • July 13 2010
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.