Author: Parmdeep Vadesha Added: August 26, 2008
Unfortunately, defaults on mortgages and property repossessions are becoming an unpleasant fact of life for many homeowners in the United Kingdom. However, what is indeed a tragic event for one could turn into a profitable opportunity for another. For first-time home buyers looking for a reasonably-priced dream home or property investors seeking a profitable investment, repossessed properties can be a good option. Now that you are convinced of the merits and profits of repossessed properties, you might want to start an investment of your own. For most first-time home buyers or property investors, a good question is where to begin. My answer: scour around for a repossession list -- a catalogue of the repossessed properties in your chosen area. A repossession list, whether an auction catalogue or an online mailing list, can be a good source of first-hand information on the properties in the market as well as a way for you to compare prices to find the cheapest and best deals in town. Check to make sure the list is current and you are not charged much if at all for access. Aside from a repossession list available through some property websites or estate agents, your neighbourhood newspaper or local housing authority could have some information regarding the availability of repossessed properties in your area. Now that you are all set to start your search, the perfectly-priced property may not be far away. Following these leads, you'll soon find out that repossessed properties at bargain properties are indeed everywhere -- if you only know where to look. Many of the repossessed properties can be viewed and purchased at an auction sale. Most of these auctions are conducted quietly and without much publicity. Buying repossessed homes at auctions is definitely profitable if you know how to play the game. First of all, keep in mind that a property auction is not a gamble or a game wherein the object is to win the prize at whatever cost. Remember that you are supposed to get a cheap property at an auction. Stick to your maximum bid price and do not go higher if you cannot afford it or if the price will eat away at your profits. Repossessed properties are supposed to be cheaper than new-builds or brand new ones. If the price is too high, then it is time to put down the paddle. The property investment arena is one of the best avenues to earn a hefty profit in a relatively short amount of time. However, like most investment opportunities, there are some risks and potholes involved. Minimise these hazards by choosing your investment wisely and carefully. Before you sign on the dotted line and hand over your hard-earned cash, make sure that you have done primary research on the property. Have you done a drive-by and checked the neighborhood where the property is located? Have you inspected the interiors of the property thoroughly and meticulously? Have you checked the legal papers of the property and are satisfied that there are no legalities that could give you trouble later on? Do the figures add up to still give you a lucrative profit or healthy savings? After a healthy dose of research and some wise strategising, you could now be on your way to a profitable investment in the world of property.
--- 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 - http://www.Property-System.com
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