It’s no secret that repossessed properties can offer fantastic investment opportunities but finding and buying them can be tricky when compared to other types of property. If you are looking to buy a lot of stock then you should look to LPA receivers. If it’s just one or two you are after then you should look to auctions or to estate agents. However, you are unlikely to be told outright which properties are repossessions so you need to know what to look for.
Repossessed Property is often seen by many investors looking at ‘buy to lets’, as a great option, but is it the best option? And do repossessions actually make good investments?
Let’s get straight to the point. You know that repossessed houses and properties in distress that are on for sale offer a lot of potential for property investors in the buy to let market. You know that these properties are often sold below market value and are therefore very good investments. But you also know that mortgage companies and estate agents will do anything in their power to hide the fact that these properties are repossessions.
There’s no doubt repossessed properties can make great investments, but if you’re seriously looking to buy repossessed houses in the UK then you must consider these 3 pitfalls before you place any offers… hidden damage, gazumping and speed of sale.