How would you see this?
A property (standard house) was sold by the developer to an investor 10 years ago. The house had various tenants over time. No investments were made, so significant wear and tear is visible, and investments are currently needed and foreseeable. The garden is also not landscaped. Prices for comparable new-build properties appear to have increased by about 30% (not in a major city, but in a sought-after area with limited supply). For a comparable new build (compared to the property’s original condition), the price today is around 400,000. What would be your benchmark for the existing property?
A property (standard house) was sold by the developer to an investor 10 years ago. The house had various tenants over time. No investments were made, so significant wear and tear is visible, and investments are currently needed and foreseeable. The garden is also not landscaped. Prices for comparable new-build properties appear to have increased by about 30% (not in a major city, but in a sought-after area with limited supply). For a comparable new build (compared to the property’s original condition), the price today is around 400,000. What would be your benchmark for the existing property?
Thank you all for the many responses. Yes, setting a limit on what we’re willing to spend and, if necessary, renting or staying where we currently live will probably be the best option for now. Considering our income, we live modestly (we’ve also saved quite well), we travel, and we want to maintain our freedom. On the other hand, the idea of living nearly cost-free if things only go moderately well, and being able to act quickly if our dream property ever comes up, is appealing. But as always, opportunities come with risks. If we had done this ten years ago, it would have been a good move. However, we don’t want to take on too much risk now (emotionally, the house doesn’t have enough value to justify it).