How to Buy a Repossessed Property for Below Market Value
How to Buy a Repossessed Property for Below Market Value Getting started in property investment is no easy feat. Hunting for houses and properties can be time consuming, most especially a first-time property investor. With the stabilising property prices and fidgety interest rates, many would-be buyers are waiting to see what will happen next. Some people say that a good investment is not simple to find, nor is it easy to make deals. However there are thousands of cheap bargain properties out there, if you know where to look. For the daring and the unconventional, a repossessed property offers a very good investment opportunity. And as many investors have proved, taking the road less travelled has been worth it.
If you are willing to spend some extra time doing research and investigation in exchange for savings, then the repossession market could be just what you are looking for. Moreover, today's tough times have resulted in many homes and properties being repossessed by banks and lending establishments and subsequently being put up for sale at very reasonable prices. Repossessions are thus a viable and promising alternative to traditional properties, being a more affordable option.
However, buying a repossessed property below market value is not a get-rich-quick scheme. Nor is repossession a cheap impulse purchase. A repossession purchase can be tricky, and requires you to be as thorough and meticulous as you can possibly get in order to profit and maximise your investment. Here are some tips from the professionals on how to start up the property ladder on a repossessed property:
* Know all you can about repossessions. Do your homework beforehand. Even though they offer more savings for you as an investor, repossessions generally carry more risks than traditional properties since they are priced lower. But as they say, high risks equate to high rewards. The best way to minimise such risks is to subject your potential property to a systematic and meticulous examination by having it surveyed. Know as much as you can about the property so you will be prepared and knowledgeable about its true state.
* Location, location, location. As with all types of property investments, location is crucial. Identify those areas that are desirable and conducive to your target clientele. For example, families would want to live in a sub-urban neighbourhood that's safe and secure. On the other hand, young professionals prefer to reside in hip, trendy areas close to the central districts. Zoning in on these desirable places would limit your search for a property to a certain number of areas, thus saving you a lot of time and effort.
* Find out the value of the property. To determine the property's value, compare its purchase price with two or three other properties similarly situated or located in the same neighbourhood. Comparing the purchase price with the current values of other properties in nearby locations will give you a general idea of whether or not you are obtaining a bargain deal on the property that you have chosen.
About the Author:
Parmdeep Vadesha is a property investment expert and founder of the largest community of property entrepreneurs on the web who buy below market value properties from distressed homeowners facing repossession, divorce and bankruptcy. He writes a monthly newsletter for over 70,000 property investors worldwide - www.Property-System.com
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