- 13 December 2021
- Posted by: admin_gray
- Category: Property
Written by Sapphire of the Savvy Women Group
So where is the best place to look for repossessed properties in the UK? And why might they be a viable option for the Savvy Property Investor? In today’s blog we have a few suggestions for you to check out.
WHAT IS A REPOSSESSED HOME? “A repossessed property is a home that’s been seized by a lender because mortgage repayments aren’t being made” – MoneySavingExpert
WHY YOU SHOULD LOOK FOR REPOSSESSED PROPERTIES: Homes that are repossessed can be sold between 10-30% off normal market value, this in most cases is because the bank wants a quick sell to make that money back. It’s obvious then, that you may come across a rare gem that is within or even below your budget.
THINGS TO CONSIDER:
Don’t buy a property that becomes a money pit
To prevent this, you’ll need to do your research on the property making sure to uncover any hidden damage.
This is where a property surveyor is more than vital
Second viewings are a MUST
Nervous about repossessions?
Property investors on the small scale, may feel uncomfortable buying a repossessed home, this may be due to feeling as if they are taking something away from someone else.
Be assured that no home can be repossessed without due legal process, where the original borrower can defend against such action. Therefore, when a house comes to market the previous occupants of said home should have no bearing on a purchase.
Now let’s talk about searching for repossessed homes:
1. THE MAIN PLACE TO CHECK OUT REPOSSESSED PROPERTIES IS AT A PROPERTY AUCTION. They will have lower priced houses available for cheaper prices.
-You can get a good fixer upper home, make it beautiful and sell it for more than you bought it for. That is one way to find a really good investment property.
2. YOU CAN ALSO CHECK ON REPOSSESSED PROPERTIES FROM THE BANK. Banks will sometimes foreclose on houses and sell them for less than asking cost as well. You do have to know where to look to find the repossessed houses and if you find them then try and buy one to make it another investment home.
3. YOU SHOULD LOOK ONLINE AND SEE IF THERE ARE SOME REPOSSESSED HOUSES BEING POSTED. There are websites such as Rightmove and Zoopla and other housing sites. Those sites can give you key words to check on to see if there are ‘public notices.’ Those are more of an indicator of being a repossessed house.
-Not only can you check those online but in a local paper.
4. YOUTUBE IS ANOTHER GOOD SOURCE TO FIND OUT HOW TO LOCATE REPOSSESSED PROPERTY. Look online at estate agent’s channels, they may give tutorials on what to look for when trying to find a repossessed home. These homes are not always diamonds in the rough, but you can find one!
-We really like Touchstone Education’s video on Top Tips When Buying a Repossession Property-Property Investing with Abi.
5. YOU SHOULD ASK A LOCAL REAL ESTATE AGENT IF THEY WILL LET YOU ACCESS THEIR LIST OF REPOSSESSED PROPERTIES. Sometimes estate agents get firsthand knowledge of what properties are available and can pass along the information to potential buyers. That would be extremely helpful especially if you wanted to buy one and fix it up.
6. CHECK ONLINE IF THERE ARE ANY REPORTS ON REPOSSESSED HOUSES. There might be some links to check to see if investing in this type of property is worth the time and effort.
-We have included a helpful website where you can search for local repossessed homes in your local area – Propertydata
-If it is worth the investment to you then go for it. In the long run it can make you a lot of money and secure your future financially.
Sometimes it is worth it to buy a repossessed home. You can make it beautiful and worth more than what you bought it for. Imagine that you are fixing it up to make it someone’s dream home!
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