Seanf, Home Buyer in San Francisco, CA

I am trying to decide if Portola is right for me, I have been told that an old home is a better investment than a new home. Is this true?

Asked by Seanf, San Francisco, CA Fri Mar 8, 2013

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Hi Sean,

If I understand correctly, your question is more about buying an older home in an established neighborhood versus buying a new home in a developing area.

Maintenance issues and life of house components aside, it is always about the potential of the neighborhood.

We can argue from the position that there is no place to build in an established, older neighborhood, there will always be as much housing inventory and even if something will be build, it won't be the same style- example: Victorian, Mediterranean, Edwardian, making the older homes more architecturally significant. In that respect, it may be true.

In an newer, developing neighborhood, where there is potential to growth, you might find a lot more inventory and the style of the new homes could be very similar to each other.

But at the end it depends of personal preferences and the ability and willingness o care for an older home.

I hope this answers your question.

Good luck in your home search!

Best,

Alina

Alina Aeby-Broker Associate
Pacific Union International
http://www.bestsfhomes.com
415.744.4844
1 vote Thank Flag Link Fri Mar 8, 2013
No, as a home gets old, it's value depreciates over time.

Good maintenance, demand for homes in the area will make it a good investment.
Appeal, charm, views, amenities, location play such a big part that AGE of a building
is only one factor to consider.
Buy a newer building constructed after June 1979 in SF and no more worries about rent control should you decide to rent out plus possibly less deferred maintenance to deal with as Jane Lane pointed out in her answer.
0 votes Thank Flag Link Fri Mar 8, 2013
That depends on a lot of things... Like are you buying a home to live in or are you buying an investment property. What makes a home a home is the memories you make while you live there - other than that the house itself is really an expense. An older home can come with a lot of deferred maintenace. If you are handy... that could be to your advantage although it's a competitive market. If you not handy, you can purchase a home with what is called a "ReHab" loan and actually finance the cost of the improvements into the loan. After your loan closes and you have the keys the contractors get to work and the money is in the bank to pay them. Nice! Hope this helps.
0 votes Thank Flag Link Fri Mar 8, 2013
I replied to your intial post re better "investment" - saw your update to "value" after I had already posted. Hope it's helpful anyway and I'll leave the value questions to the Real Estate Agents.
Flag Fri Mar 8, 2013
Sorry- I maybe wasn't clear, I mean have more value.
0 votes Thank Flag Link Fri Mar 8, 2013
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