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  1. #1
    Join Date
    Jun 2009
    Posts
    1

    Default Buying an Antique: Should we expect ANY ROI?

    Hello. My question is simple- Is an Antique home an investment? Is it possible to make money when you sell it? I plan to live in this house for a very long time- but one day we (or our children) will need to sell this house and I am wondering- if it is a good investment for our family. The house was built in 1790 and restored/renovated and absolutely stunning! However, (as with most) there is bug damage and a dirt basement. We know there will always be projects and therefore money spent on maintaining this house. What do current owners think? If you had to do it again- would you?
    PS- Did I mention it is stunning?

  2. #2
    Join Date
    Jun 2007
    Location
    Fayette County, Ohio
    Posts
    5,621

    Default Re: Buying an Antique: Should we expect ANY ROI?

    That's a tough question to answer right now with home values in some areas plummeting 40% over the last year. Location is a key to appreciation, but how much over the next several years is speculation at best.
    Jack
    Be sure you live your life, because you are a long time dead.-Scottish Proverb

  3. #3
    Join Date
    Oct 2010
    Location
    Baltimore, MD
    Posts
    17

    Default Re: Buying an Antique: Should we expect ANY ROI?

    Norm, Coincidentally, portions of my house were also built circa 1790.// And regarding "Location, location, location" - that's what led me to mine. I got in my car, and shopped based on geography (and demographics) . My theory was, anyone can own a new house, but there are only so many historic houses. That said, many dear friends have commented "Well, I am glad you like it." They're old houses! And among other things, they were constructed from stones and timbers. And some beautiful doors are unconventional. I call it character, they call it old.// The money, and your return on investment. Notwithstanding the purchase price, to properly maintain these houses, it can be financially draining, and at times emotionally tiring; there's preventive maintenance and predicted failure expenses, and then there's the unexpected "What, no water!" You need to escrow some cash or establish a dedicated line of credit (and don't use it for Christmas shopping; that boiler will need some attention). I have also constructed a user's guide, and I suggest you do the same ... before you need it; and become your own facilities manager. Know who to call, and equally important, understand your cost. Also, review national and state/ local government historic preservation trust, registers, etc publications. They likely include some valuable tax information and incentives, but beware: the same great organizations also serve to govern repairs and renovations that affect architecture. Moreover, participate in your local preservation and community organization; you can help navigate change, and your neighbors can be helpful. Lastly, in the eight years I've lived here, I'm generally satisfied that the house's resale/ market value exceeds its purchase price plus capital improvements. But it's a very specialized market, and most people are glad we like it.
    Hidden Content // Editor-in-chief

  4. #4
    Join Date
    May 2011
    Posts
    251

    Default Re: Buying an Antique: Should we expect ANY ROI?

    I think older homes (homes built prior to WWII) are more likely to hold their value better than new construction.

    The quality of materials and construction methods dropped considerably after 1945, due the the high demand for low cost homes. That has only continued where quantity over quality is demanded.

    Just look at replacement windows. Do you think the current windows will last 100+ years? even 50?

    How do you think all of this fake brick, vinyl siding, fake stone, tons of foam, plastics, etc will hold up 50 or 100 years from now?



    But in the short term... it all depends on location, supply & demand, and comparables. IF youy paid too much , it will take a while to recover it.
    1925 Two-Story Stucco Beaux Arts Neoclassical

  5. #5
    Join Date
    May 2011
    Location
    Huntsville, Al
    Posts
    19

    Default Re: Buying an Antique: Should we expect ANY ROI?

    in Huntsville, AL there are a few districts that formed Historic districts and are now some of the highest square footage cost in the area. They are usually in very good locations and the people who made a good size profit are the ones who got in before, bought it at $30/Sqft and held on when it hit $99/Sqft. That same thing is happening in the Merrimack Mill, Lowe Mill, and Dallas Mill districts.

  6. #6
    Join Date
    Oct 2011
    Posts
    11

    Default Re: Buying an Antique: Should we expect ANY ROI?

    Location makes all the difference. You can even have a rehabber in a nice historic city area and it can fetch more money than a beautiful home in a crime ridden rural area. It's unfair to the homes that it is that way, but that's how buyer's are and with good reason.

  7. #7
    Join Date
    Apr 2012
    Posts
    6

    Default Re: Buying an Antique: Should we expect ANY ROI?

    I am asking the same question - is an antique house worth preserving?
    I recently inherited my mother's house built circa 1796. To the best of my knowledge it was originally built as a half cape and then added on to. My parents renovated the downstairs, but the upstairs rooms are pretty much untouched. How do I fix the plaster and restore this house to maintain it's integrity without it costing me an arm and a leg??

  8. #8
    Join Date
    Jan 2009
    Location
    Needham, MA
    Posts
    559

    Default Re: Buying an Antique: Should we expect ANY ROI?

    how about this, your house was built in 1791 for probably about $1,000 and let's say you paid $250,000 two hundred years later, by 2191 it will hopefully be worth $500,000. does that answer your question?

    i'm a huge advocate for saving, restoring and maintaining antique homes. i would never buy a new construction house. and let me tell you that there are alot of us out there. yes you will spend some money fixing and maintaining it but i can assure you that in the long run it will be money "well" and "smartly" spent. there was, is, and i'm sure will always be a market for your house if it is loved and maintained.

  9. #9
    Join Date
    Aug 2012
    Posts
    10

    Default Re: Buying an Antique: Should we expect ANY ROI?

    I am glad you like it." They're old houses! And among other things, they were constructed from stones and timbers.

  10. #10
    Join Date
    Aug 2012
    Posts
    31

    Default Re: Buying an Antique: Should we expect ANY ROI?

    I totally agree with motoguy128. As compared to new constructed house, old constructions are substantially solid. & I donít think you will be in loss when you sell them as the prices will be either steady or higher than current. There is no chance of getting them lower. But yes as PP said "IF you paid too much, it will take a while to recover it.Ē

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