Hot tips to buy a house for free

The concept of buying a house for free may appear fanciful but can become a reality if astute property buyers focus on opportunities in the current real estate market.
One of the golden rules in the property market is that the actual structure of houses depreciates in value over time, while the land the property is built upon appreciates in value In the more expensive suburbs of Perth, you will often see old fibro homes being demolished and replaced by a modern home. This is because the existing homes have been fully depreciated in value and the property is only worth its land value. For the owner it makes more economic sense to demolish the house rather than trying to renovate or repair it.
Generally, houses tend to become fully depreciated at around 40 years of age. Astute property buyers should therefore be looking at Perth suburbs that were established around 40 years ago and selecting homes that have minimal renovation work.
For example, in the northern suburbs there are a cluster of well located suburbs that are around this 40 year age benchmark. These suburbs include Hamersley, Warwick, Duncraig and Greenwood.
Original homes in these suburbs can now be virtually bought at near land value. Even though the structure of these houses is technically worthless, they can still be renovated to add value. These original homes are made of bricks with tile roofs and generally have three bedrooms, a lounge and bathroom. By adding just an additional bathroom, along with other cosmetic changes, the value of these homes can be substantially increased.
Another benefit of buying a home which is around 40 years of age is that the size of the lot is large. Forty years ago, building land was more plentiful so lot sizes were much larger than today.
In areas such as Warwick and Greenwood, lot sizes are generally more than 700m2. These larger lot sizes offer the opportunity for subdivision in future years due to their close proximity to the city centre, the growth in urban sprawl and upward pressure on land values.
For anyone considering buying a home at around the current median house price in Perth of $500,000, these affordable near city suburbs which are around 40 years of age offer excellent value for money and lots of potential for future capital growth moving forward.
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