Are Repossessions a Good Investment?
In a word yes, repossessions are a good investment. But you have to be careful to choose the right repossession and buy at the right price.
As with refurbishment properties, the recent wave of property programs on television has substantially increased the public awareness of this type of property gain. Often this in fact drives the price of the property up as people bid against each another. You have to be extremely careful that you don’t get carried away with bidding and end up paying more too much. Often when there is considerable interest in a property the seller (usually a bank or building society) will go to what we call “sealed bids”. This is when each person submits their best offer to the Agent dealing with the property.
What Should I Look Out For?
As with all purchases, you should consider the property because of its price, location, rent-ability and potential. Don’t get carried away with the idea that it has to be good because it’s a repossession.
Will I Need to do Any Works to the Property?
Most repossessions will need either a little modernisation or light refurbishment. You also often find that many of the fitments have been removed by the previous owner.