[McBain II]

Originally Posted by desertrat22

You mean simple if you do it illegally?

Out here, the building inspector's interpretations of building codes are, shall we say, unusual in a best case scenario.

No, you can do it legally and without much issue.

[desertrat22]

As time goes on -- and the houses get older -- do you think they will retain their value? I was always taught it's foolish to finance a depreciable asset (i.e. car) because you'll never get back the interest you have to pay. Granted, the interest on a $80,000 house shouldn't be too bad unless you wait 30 years to pay the mortgage off. Just wondering...

[McBain II]

Originally Posted by desertrat22

As time goes on -- and the houses get older -- do you think they will retain their value? I was always taught it's foolish to finance a depreciable asset (i.e. car) because you'll never get back the interest you have to pay. Granted, the interest on a $80,000 house shouldn't be too bad unless you wait 30 years to pay the mortgage off. Just wondering...

The Omaha housing market is pretty stable and generally immune to big swings one way or another, so you should be fine.

[nebr]

Older homes are less energy efficient in that they are not air tight. However, they were designed to be more efficient than newer homes in some important ways. For example, windows in older homes were positioned to facilitate cross ventilation in the summer. This means I can keep my house (1885) cooler and run the A/C less often. My house also uses radiant heat, which is more efficient than forced air. As far as wearing out the equipment, my boiler is from 1909 is cranking just fine.

I think that MountainMen hit on an important point. If you travel to many other cities, the housing stock near downtown and other urban neighborhoods is highly valued. Omaha has a very suburban mindset - people here seem to really love their urban sprawl. I believe that this is changing, and will certainly change with the younger generations buying property. However, because it is in the process of changing, there are many excellent homes that can be had without having to pay the suburban prices. By the way, I have an attached garage, but it is attached via a tunnel from the basement.

[itsMeFred]

Something else that no one has mentioned is that an older house, particularly if it's been through a few owners, will often need work. Serious work.
New wiring, new plumbing, replacing that soft spot where the bathtub used to leak, etc.

Personally, I love an old house, too. I grew up in a beautiful 1914 3-story Craftsman style. My folks still live in it.
The honey-do list on a house of that vintage is never ending.
It's not hard to turn one into a money pit.

[Dutchman01]

Originally Posted by desertrat22

I see a lot of Omaha houses for sale in the $50,000 to $75,000 range built in the late-1800's and early-1900's.

Aside from age, are these homes cheaper because they're terribly inefficient with energy costs? If the heating and cooling bills are double or triple that of a newer home, I could understand the lower home value.

That and they are in constant need of attention. I have a home that is right at 100 years old. I won't tell you what I've done, or the last owner, or the one before that. Let's just say, it's a work in progress. Still I love this old place.........if it doesn't kill me.

[Dutchman01]

Originally Posted by desertrat22

As time goes on -- and the houses get older -- do you think they will retain their value? I was always taught it's foolish to finance a depreciable asset (i.e. car) because you'll never get back the interest you have to pay. Granted, the interest on a $80,000 house shouldn't be too bad unless you wait 30 years to pay the mortgage off. Just wondering...

As long as you maintain the place, and the neighborhood doesn't go to pot on you.

[a1sspiked]

Alot of those older homes sit in not so desirable neighborhoods as well so this is a BIG factor as to why they priced so low. You take some of those 2000 sq foot homes and place them on half an acre somewhere out west you would add a LOT to the price. What is it they always say, location location location!

[DavidGeorge]

Originally Posted by desertrat22

I see a lot of Omaha houses for sale in the $50,000 to $75,000 range built in the late-1800's and early-1900's.

Aside from age, are these homes cheaper because they're terribly inefficient with energy costs? If the heating and cooling bills are double or triple that of a newer home, I could understand the lower home value.

First and foremost, it has to do with location. Some of these "cheap" houses are in undesirable areas.

Second, it is extremely important to remember that you CAN do MANY things to make an old house extremely efficient. My family lives in a 4400 square foot, 2-1/2 story brick house, that was built in 1928. Our total heat & utility cost is $150 per month (gas, electricity, garbage, water & sewer). Very few houses, smaller and newer than ours, are that efficient!

[McBain II]

Just for the record, alot of these affordable houses are NOT in "undesirable" areas. I can go on any Omaha realtors website and without much effort find you a handful of >$100,000 houses in perfectly decent blue collar neighborhoods.