Which of these properties would you choose if they were about the same price?

[Anonymous]

Fair price modern property in excellent condition with no work required ready to be lived in

Bargain price 20 year old property in fair condition and can be lived in but aged property which could do with modernisation

[AviatorTom]

Your question confuses me. It hints that these properties are the same price, but then the description of each shows a modern "fair price" property and a "bargain price" older property.

If they are truly the same price, the "bargain price" older property must be much larger (perhaps with more land) than the "fair price" property.

So, based on that, I'll take the "bargain price" property, fix it up, and have myself my mini-mansion. Maybe after living in it for a few years and getting it fixed up, I'll sell it, make a nice profit to invest, for my retirement and buy myself a more moderate home.

[Asker]

Yes it’s older and larger. Where will the money to fix it up come from?

[AviatorTom]

Home equity loan? Pretty easy to convince a bank to lend money to increase the value of the property that's collateral on the mortgage of such a large property.

[Anonymous]

A reno could cost a fortune especially if it’s an old house. Sometimes the problems aren’t entirely visible, like plumbing issues, mold, decaying structure, etc. Unless you can have someone check out the old property thoroughly and give you an estimated quote for renovations before purchase then the newer home would be the more economic option.

[Asker]

You can get a survey.

[exitseven]

I will take the older one and fix it up.

[Asker]

Yes it’s older and larger. Where will the money to fix it up come from?

[exitseven]

I will save up and do it a little bit at the time. There are a lot of things you can do that will increase the value of a property that do not cost a ton of money. In my first house I just painted the place, replaced trim and built a deck and after 3 years I sold it for twice what I paid for it.

[jennifer_bloom]

Is this an IQ test?