1400's property

Hello All, My name is Karen and I am from Malta Europe. You might wonder what am I doing in a forum for the US but I think you can share valuable information on the following. My husband and I would love to purchase a property for our 1st. rental investment. (We are aged 43-44) and can buy cash without the need of a loan. My husband would like to buy 2 apartments and rent them out. On the other hand I have the wish to buy a property which has some history. Please bear in mind we build in stone here not wood. We call them houses of character. My mum's side of the family has this property which is very old and houses 2 stone ovens which take up half this big old room which once long time ago was a bakery. Went to see it, did some research and I was stunned to descover this part of the building was 1400's possibly earlier in Sicolo Norman style. A Medieval mill room! Which much later may have been added with the stone ovens. As per our architect it is English 1700-1800's These buildings are protected. So most probably the stone ovens would need to remain, eating up half the room, on top of them there is a space where one could use for lounging more like a loft space so to speak. The remaining 2 rooms which are old but more recent 100 years approx; need to be renovated and an extantion upstairs built to make this property work. These are an estimation of costs: Restoration of old & Building of new extention about 150K Cost of Property about 130K There is also the chance when dealing with properties so old that if anything is discovered of heritage in the renovation, the works will be stopped, until they are studied. If you where faced with these if and buts what would you do? I am way attached and mesmerized by this property and its history. Being part of my family heritage gives it an added value to me. I'm afraid of doing the wrong decision. I thank you for your time reading this. K

Comments

  • What is it worth once renovated?
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  • KazKaz
    Posts: 2
    Hmm! Great question! With a booming economy these past 5 years and I'm positive for the coming 5 will keep growing. Due to this we have seen a huge property inflation. If, say the total project will cost 300K and with the new extension it will total around 260 square meter. I think that once finished it can be easily valued about 350K+ I have seen properties which yet need restoration at this present moment being sold at that price range. There is also a scheme which the government is giving out that we can benefit from of 10K to restore old houses in the village core, so that is a plus. The government is also planning to get U.K. Investment which want to remain in the EU as a result of Brexit. All this will push property rentals even more up. Currently apartments are being rented for short lets basis for minimum €100/day if not more depending on location. Being a house I think we can get even more then that. It would be an amazing property to rent for short lets to tourist due to its history. Such a niche is being created locally where a lot boutique hotels are opening up in every village. My plan is to buy now that we still can afford to buy and fix it to rent it out so to pay itself by renting. Eventually, if this journey of Rental investments stops here without any other house purchases we will have a house to retire to once our present house is gone. As we are living in a property which is my parent's. I believe that if we do not purchase any property now, eventually it will get way too expensive. Irrelevant of how much money we can earn working. The ratio of property value to wages is way out of the picture and will be more so in the imminent future. What is your feeling towards this growing property inflation? Do you think the bubble will eventually burst?
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