Finding an older home with great investment potential can be a matter of pride and accomplishment. Your final decision to buy or not buy an older home should be based on careful reflection of the home's condition and the estimated final cost to make repairs.

There are some home repair jobs that are beyond the capabilities of the first-time DIY person. Sewage and septic or roofing repairs are three good examples. Digging up a septic system isn't something most homeowners know how to do, so a professional has to be called in.

Working with contractors can be daunting and expensive if you don't know what questions to ask and what your legal rights are. Before hiring a contractor, be certain to check at least six references and inquire about their background with your local Better Business Bureau.

If you are in a hurry to get the job done, hiring an expensive contractor isn't a guarantee that they are any more professional than the least expensive. A good rule to follow is to pay attention to the gut-feelings you get when first meeting a candidate. Try not to hire a contractor that makes you feel uncomfortable or tries to bully you in any way.

In certain situations, a home repair could qualify for a government grant or tax credit. Two examples are energy efficiency repairs or upgrades, such as energy efficient heating, cooling and insulation. A good way to add value to an older-home is to upgrade the old systems instead of making only the basic repairs.

If you are considering an upgrade, give some thought into preserving any appliances and fixtures that have antique value. If any of these appliances are broken, decide whether or not to repair, restore, or upgrade the appliance. This can be an expensive decision in some instances, as finding a source of materials and parts can prove difficult. Although making repairs to old appliances can be expensive, it could be worth the money when it comes time to sell the home.

Many older homes are still equipped with outdated power panels, light switches and electrical outlets. Plan to replace these as part of a larger home improvement plan. Unless your older home's entertainment systems have already been upgraded, you should consider installing a high-speed cable television and computer network only if you aren't already using high-speed wireless devices. Electrical wiring upgrades are going to cost some money, depending upon the size of the home, as will installing home computer networking equipment.

Typically, other areas that need upgrading include the home's plumbing and heating systems. Unless the home has been kept up to date by the previous homeowner, the new homeowner will be facing upgrading the plumbing and heating systems to meet new energy efficiency standards.

Some charming older homes are listed on the National Register of Historic Places or in a Historic Neighborhood. Investing in such a home can be a good decision, although there are certain conditions that apply. Be aware of these restrictions, particularly those on making renovations, as a renovation that alters the appearance of the home is generally not allowed.

Investing in home that is more than a couple of decades old is likely to be a big investment, and any return on your hard-earned money will not be realized until after all the necessary home repairs and upgrades are made.