Work Towards Finding Property At Big Discounts
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"Sourcing distressed properties is one of the most lucrative strategies in the property market today. There might be financial problems associated with a distressed property (or a property that is about to become bank repossessed). If the property has already been foreclosed, or has been under foreclosure, or has been repossessed by the bank for being sold or auctioned, it is known as a distressed property. One of the main reasons as to why banks are selling their properties below market value once they have already been forclosed is that they cannot hold or manage the property any longer as it becomes expensive. The principal concern is to cash out on the property at the earliest time possible.
Distressed properties are sometimes in a run down state and often accompanied with financial problems on the seller's side. With the newly made constructions being held out or cancelled as a result of the economic slowdown, an increasing number of real estate investors are looking into the real estate market for distressed properties as a method of cheap investment with built in equity. This kind of property can be purchased at a considerable discount compared to existing market rates. Investing in a repossessed or distressed property can be turned into a substantial profit, especially if it involves bulk acquisitions allowing investors to stir their way to concrete discounts.
With distressed properties, the risk factors are lowered since the discount cushions the investor against simultaneous falls in housing prices. There is also no developer risk to be concerned about. Distressed properties offer the scope for making big profit in a short space of time, as you can resell it fast at reduced prices and still profit from the sale. "
Author: IMAGINE Properties