Cheap Oldhousesunder50K (2024)

FAQs

Is 50K enough to buy a house? ›

You can generally afford a home for between $180,000 and $250,000 (perhaps nearly $300,000) on a $50K salary. But your specific home buying budget will depend on your credit score, debt-to-income ratio, and down payment size.

Buying an older home or a “fixer-upper” can be a smart investment. But potential issues hiding within those aging walls may end up costing you more than buying a newer build. Determining the cost-effectiveness when purchasing an older home is essential to making a smart choice.

Without special care and regular maintenance, their lifespan can reach about 200 years. But even though the materials used in many old houses are designed to last this long, there is still a chance that you will find problems in the structure or foundation.

What is an older home? As a general rule of thumb, homes built after 1990 are considered newer, and homes built before 1920 are considered “old” or “antique.” But housing age is a subjective condition that turns on numerous factors. The most important include: Construction Style and Quality.

On a salary of $36,000 per year, you can afford a house priced around $100,000-$110,000 with a monthly payment of just over $1,000. This assumes you have no other debts you're paying off, but also that you haven't been able to save much for a down payment.

The 28% of your income rule

If you earn $50,000 per year, you earn about $4,166.67 per month. At 28% of your income, your mortgage payment should be no more than $1,166.67 per month. Considering a 20% down payment, a 6.89% mortgage rate and a 30-year term, that's about what you can expect to pay on a $185,900 home.

Foundation Issues

Foundation issues in old homes are very common and must be addressed in order to keep the home livable. They can range from smaller settlement cracks to damaged support footings, which can be extremely costly.

Cons Of Buying An Older Home

If you purchase an older home, you may spend more on repairs and maintenance than a homeowner in a brand-new house. Not as customizable: When you purchase an older home, you kind of have to work with what you get. The house has a set floor plan and design.

There are several factors that have allowed these old homes to last for centuries; superior raw materials, unimpeded energy flow, and air flow. The materials these homes were built with had a higher potential to store water without failing, and could dry out easily due to the lack of insulation and air flow.

If your home was built before 1978, it is more likely to have lead-based paint. In 1978, the federal government banned consumer uses of lead-based paint, but some states banned it even earlier. Lead-based paint is still present in millions of homes, normally under layers of newer paint.

Do old houses keep their value? ›

An older home may be just as valuable as a new home if these features are up to date and concern for maintenance costs is minimal. The quality of initial construction also affects value.

While homes from this era were built very well, they are now over 100 years old and that means that they will need some TLC. Your home inspector should identify certain components of the house even if they are functioning properly.

And experts say older homes are at higher risk of having termite damage. This is both a factor of age and maintenance but also a factor of building materials. Modern construction materials are a bit more termite resistant than wood frame construction of the past.

Some of the most concerning dangers of old houses are asbestos and lead paint. Asbestos was commonly used for insulation, wall patching, and other home construction until the 1970s, and lead paint was common in-home decorating until the federal government banned it in 1978.

Cons of an Old Home Purchase

Outdated technology - Older homes may use less energy-efficient systems - such as appliances, HVAC, and insulation. Expensive Upkeep - Older homes generally need to be fixed up due to their age and come with higher maintenance costs.

Flipping Houses

With the right house, your $50,000 should cover the down payment, closing costs, and possibly even some repair costs. The risk involved in flipping a house is often higher than in other real estate investments.

Assuming a 20% down payment on a rental property, your $50,000 could have $250,000 of purchasing power, more than enough to buy your first investment property in many U.S. markets. Before you decide to invest in real estate, be sure to do your homework.

How much house can I afford with 40,000 a year? With a $40,000 annual salary, you should be able to afford a home that is between $100,000 and $160,000.

If you earn $50,000 a year in San Francisco or New York, you undoubtedly will need a roommate — or three — to make ends meet. But in many cities in the United States, $50,000 a year is plenty to live on.