Written by Kodie Axelsen
Old houses have a certain allure. The big rooms, high ceilings, ornate details, and big blocks draw people in. But from a finance perspective, an old property isn’t just about charm, it’s about risk, planning, and strategy.
As a finance broker, I see buyers fall in love with character homes, only to be blindsided by hidden costs or lending hurdles. If you’re considering an older property, here’s what you need to think about.
- Look Past the Facade
Fresh paint and polished floorboards can disguise major issues. Plumbing, wiring, and roofing are common trouble spots in older homes. These aren’t cosmetic fixes, they’re structural and they come with a hefty cost. Before you commit, look further into the structural condition of the home and make sure your purchase works with your plan and budget. - Budget for More Than the Purchase Price
One of the biggest mistakes buyers make is stretching themselves to the limit on the purchase, leaving no buffer for improvements. With old homes, you’ll want to factor in the cost for renovations and upgrades. If you don’t need it straight away, great, but if you do, you will have to have funds set aside for it. - Never Skip Inspections
Building and pest inspections aren’t optional with older homes. Termites, rising damp, asbestos, and non-compliant extensions can quickly turn your dream home into a financial nightmare. A few hundred dollars on due diligence could save you tens of thousands later. - Factor in the Finance Side
Not all lenders view older homes equally. If the property is rundown, a bank may reduce its valuation or impose conditions that make it harder to borrow. Sometimes, structuring the loan correctly or using products designed for renovations can mean the difference between an approval and a roadblock. Your broker we will foresee these issues and will advise you upfront of potential roadblocks. - Think Long-Term Investment Value
Character homes in the right suburbs can be incredible wealth builders. A large block and some old character and charm can make renovations worthwhile and be the open door to further drive further property purchases. The key is having a strategy, understanding whether you’re buying to hold, rent, or eventually sell, and structuring your finance to match that plan.
Buying an old house can be an awesome move, but it can also be a doozy. Go in prepared, do the checks, plan your finances, and be realistic about the costs. With the right strategy, an old house could absolutely turn out to be one of your smartest investments.