Buying an old home in southeast Florida may be a great value, if the property value has increased over the last decade to make it worthwhile and the house does not have problems to fix, such as plumbing or old electrical/wiring problems. One house in Fort Lauderdale was bought for $32,000 in 1977 and recently sold for $250,000; this may be a good deal for both the buyer and the seller. Its anonymous owner considered the $250,000 price a good deal in Fort Lauderdale.
At a glance, this deal may not seem spectacular. Someone needs to consider a 6.4 percent rise in housing price may offset expenses if the homeowner invests in stocks or bonds that can yield a higher percentage, say 7.9 percent. Is it bad for a homeowner to receive more than $100,000 of an initial investment back? It may not be, but buyers in the Fort Lauderdale housing market must consider property taxes, closing costs, and other taxes to pay. They may not necessarily get their money back on taxes and other costs.
Four things to think about before buying a property
Higher Property Taxes – Older Florida homes may be a bargain compared to newer Broward County homes because the property tax may be lower. However, do not rely on the property tax being lower. It is best to check the tax records for a property before you buy. Then, a buyer has an idea of how much the property taxes are. Are back taxes owed? If it is a foreclosure, ask if back taxes will be included.
Lead Paint – Was the house built before 1978? Forty percent of the homes in Broward County were built before 1978. While there is nothing wrong loving an older home, check to see the rooms do not contain lead paint. Real estate agents and sellers of older homes are required to alerting buyers if an older home has lead paint on the premises.
Location – Location can mean everything, especially if a couple wants to be close to amenities. Still, location can be more important than a buyer realizes. Is the house in a flood plain? Read your flood insurance policy carefully. Having flood insurance does not mean you are covered. It is wise to know your location. Some Fort Lauderdale residents discovered the site of a city park less than ten years ago which the site of the city’s incinerator was in the 1920s until the 1950s. It is best to know what used to be on the property. Buyers can predict problems with the location.
Fixer Upper – Older houses may lose charm if they need expensive repairs, such as window replacement or new pipes, and have been testing for lead paint. Have a professional inspection before you buy. While cosmetic changes are not expensive, bigger fixes (such as roofing repairs, replacing electrical wiring, and moving fixtures not up to building code) are costly. Depending on the circumstances, these changes may determine if a couple, or family moves in.