Older, more established neighborhoods provide real estate investors with excellent opportunities like few others can. Yet finding such areas can be a challenge at times but once an investor does find the perfect location and the ideal address, the returns from a major rehabilitation or new real estateconstruction will be greater compared to more moderately priced, newer subdivisions.

Established neighborhoods have qualities that only time can provide. The area has its own unique character way before today’s “subdivisions” entered the real estate landscape. Building a new home for an investment in a suburban development is certainly an option and should never be discounted on its face but new subdivisions tend to look the same from house to house, with only slight alterations. Model homes in new developments show the area’s potential yet still the buyers typically select a home based upon a set of pre-made plans. The major differences between one house to the next may be little more than the color of the brick and the interior upgrades.

Older neighborhoods however are home to mature trees, well cared for lawns and properties that are unique in their own right. Builders then and builders now will always follow a theme but the character of older, well built homes is a major draw. And these neighborhoods offer a plus as they’re very often near urban business districts and provide an easy commute to and from employers, dining and shopping.

But the cost of cement, shingles and flooring is the same in one neighborhood as another by most accounts. It costs so much to build a three bedroom, single story home in one location as another, with minor differences. Yet the end product may be worth much more in an older area compared to a brand new one on the outskirts of town. It might cost the same to build the exact home, but the final value can be wildly different all due to the neighborhood.