September 13th, 2024 | Community
Are Older Homes a Good Investment in Ottawa?
The decision of whether to invest in an older home or a new build is as old as the real estate market itself! The dollar amount might play a role, but there are a myriad of questions before getting out there and placing offers. You’ll have to consider if you love the character and charm of the neighbourhood and how much work the house will need to bring it up to your standard.
The real question at the heart of everything is, Will this be a good investment over the years? In this post, we’ll explore the advantages and disadvantages of buying an older home in Ottawa and why an older home may be just right for you!
What Are Your Goals?
Knowing your long and short-term goals will ultimately guide your decision. For example, are you searching for a home for your family to live in or as an investment property, that will generate income? Your priorities will be very different depending on what you want to achieve and how you intend to use the property.
When searching for a family home, your focus will be on the lifestyle the house and neighbourhood offer. Is there enough living space so everyone feels comfortable and supported? Are the amenities you want conveniently located close by?
These practical and emotional concerns are likely front and centre. The financial aspect also matters, but may be a secondary factor depending on your goals. If you plan on using the property as an investment, long-term equity growth and potential for passive income are likely your top priorities.
Looking for even more tips to help you get great value when buying a house? The posts below can help:
- Strategies to Help First-Time Buyers Enter the Real Estate Market
- Should You Buy a Semi-Detached Home in Ottawa?
- 6 Advantages of Buying a Home with an Ottawa Real Estate Agent
Is the House Structurally Sound?
Old or new, a structurally sound house is essential. This is true whether you’re buying your primary residence or an income property. Older homes can have cosmetic imperfections, but these are often minor. For the most part, you can decide to repair them right away or live with them until upgrades are financially feasible.
Foundational problems are a whole other issue. Not only are they prohibitively expensive to fix, but they will also cause a great deal of emotional distress. If all you want to do is settle in and start enjoying your new home, be aware that older homes may have items that unexpectedly “pop up” and need addressing. These problems can happen in a newer buildings as well, but are more common in older houses.
Structural damage can manifest in multiple ways, from a leaking basement, musty odours in the air, and windows and doors that never seem to close easily. The best way to deal with a house with foundation problems is to keep looking! A local real estate agent can help you spot potential issues and zero in on a property that is right for you.
Consider the Resale Value
Thinking about how much your home will eventually sell for, might seem premature, especially if you haven’t even placed an offer yet! But remember that this is one of the biggest – possibly THE biggest– financial investments you will ever make.
This property will make up a significant portion of your net worth and purchasing power over time. A house that is likely to grow in value will give you financial options later on. If you decide to stay for the long term, equity growth may n allow you to finance a remodel and enable you to mould your space into your dream home.
While your vision may change over time, you can upgrade and evolve with it! If you decide to downsize after the children leave, high resale value can open up far more options for you as you start that next chapter of your life.
How do you know if a house will offer excellent resale value years or even decades down the road? Think about the location and lot size. The house itself can be renovated or even rebuilt entirely.
However, you cannot change the location, so you will want to choose something in an area that is likely to be desirable for years to come. Great schools and plenty of local green space are a couple of great indications that your home will grow in value.
Established neighbourhoods and mature landscaping are just a couple of reasons why older homes remain popular with buyers of all ages. Your real estate agent can offer you even further guidance to help you find a place that fits your needs now and in the future.
Speaking of neighbourhoods, where should you begin your search? Here are a few great places to start:
- Ottawa’s Civic Hospital Neighbourhood; Make it Your Home Too!
- Neighbourhood Spotlight: Little Italy
- The Glebe – Ottawa’s Historic On Foot Neighbourhood
What Does Ottawa Offer?
Older homes can give you the opportunity to get into the market at a lower price without sacrificing square footage. Even better, they typically come with larger lots than most new builds and they are often found in more urban neighbourhoods.
If this is the route you decide to take, you’ll find plenty of fantastic options in Ottawa. Imagine living in a stunning Victorian or Queen Anne Revival home from the early 1900s – all modernized and updated, of course! Wraparound porches and beautiful red brick exteriors are among the defining features of these classic masterpieces found in many central neighbourhoods.
Alternatively, an elegant English Cottage or Ranch Bungalow may feel more like home to you. These are just a few of the architectural styles you’ll find throughout the City of Ottawa. Whatever your vision, a local real estate agent with a pulse on the market can open up multiple possibilities to you.
Do you want to explore your options in Ottawa real estate even further? Our knowledgeable and caring experts are happy to guide you to the home that’s just right. Reach out to mail@chellteam.com or call 613.829.7484 to take the next step.
