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Gone are the days when brand new houses are the first priorities when looking for the next home sweet home or rental investment. Some buyers are slowly gravitating towards foreclosed properties or real estate that were repossessed by the bank.
Today, property seekers see great potential in foreclosed properties because of the following:
A Closer Look at Your Dream Home
Foreclosed properties are the ideal choice for those who want to get their “dream home.” You can easily add improvements to the existing structure of the property. Unlike building from the ground up, a foreclosed property already has the basic skeleton of a home that it’s just a matter of repairing windows and doors, doing some paint touch-ups, or adding another room. In the end, you get to save a lot of money and live in your ideal property.
However, do remember the most important advice in buying foreclosed properties: inspect it thoroughly. You want a home that doesn’t require too many repairs. You don’t want to drain your wallet with just fixing foundation cracks or bulging wooden floors. The best scenario is, the budget goes only to aesthetic improvements you want to make.
To avoid money pits in foreclosed properties, go for banks’ assets, as these are more reliable. Financial institutions often have a list. For instance, BDO’s lists of foreclosed properties are complete with all the details you need to know: address, price, floor and lot area, as well as photos of the actual property. Mind you, these are not just houses and lots, but also condos for sale.
Higher Market Value
Given that you added upgrades and enhancements in the property, you can expect its value to go up in the market when you sell it. Other than this financial reward, you can also receive other money-related perks from banks. For instance, institutions typically pay for monthly dues and real estate taxes, among many other obligations. They will clear all debts or liens so you basically have a clean title.
One thing to remember when taking advantage of financial rewards from foreclosed properties is that you’re not alone. A lot of property seekers out there are vying for their own piece of real estate, too. That said, it’s important to sort out your finances right before going into the market.
Having the pre-qualified badge quickly makes you a priority buyer for sellers. Plus, it helps you stay within your budget as you look at packages of house and lot for sale. Compare mortgage interest rates. Consider BDO Home Loan in your options and talk to their finance experts to arrange your finances.
With the higher market value potential, foreclosed properties make for good candidates for investment. You can sell them for a higher price than how much you got the property for. In fact, a lot of people make this their business: buying repossessed homes, fixing them up, and selling them. Others, on the other hand, treat the homes as rental properties. Sometimes, they list it as an apartment or a vacation home. However you want to use foreclosed properties in business, it’s a winning investment.
Like any other real estate investment, however, location is important. When your property is in a hot neighborhood or in an up-and-coming one, you can guarantee that its value will increase over time, turning the “distressed” home into an attractive piece of real estate.
Now the question is, how can you find a “good” location?
One thing to look for is accessibility. When the house’s neighborhood is near the municipality’s major roads or transportation systems, it becomes a desirable address for property seekers. Therefore, the value goes up.
In relation to accessibility, the measure is how convenient it would be for future residents to maintain their lifestyle. If the location of the property allows dwellers to run errands at the mall, reach schools in just five minutes or so, and unwind in parks or other recreational spaces, you can bet that it’s an address seekers will be willing to pay for.
As you look into foreclosed properties, pay attention to their locations. If you’re familiar with popular neighborhoods, you’ll already have an idea of potential places and properties for investment. Of course, you can also consult the BDO Asset Management Group for your investment decisions.
Are you planning to buy your next home soon? Considering investing in a rental property? Include foreclosed properties in your options. You may just uncover some promising financial perks from your purchase.