It’s no secret that repossessed property can be classified as below market value property and offers many South Africans the opportunity to get onto the property ladder. Usually repossessed property is bought, renovated and then resold at a profit or alternatively rented out. It is also a good option to consider for first time buyers.
A very smart way of utilizing the opportunity associated with a distressed property would be for the investor to place an advertisement saying that he/she is a cash buyer and can help prevent repossession, and is willing to purchase it for 10% below its market value. The owner or seller then decides on the price from there. Always consider the restrictions involved when comparing where establishing a price is involved. This may therefore make evaluating the below market value challenging.
The key aspect of repossessed property that stirs some excitement is the 10-30% markdown on the starting price. Since the guidelines of a good purchase involve a purchase at a bargain, this discount carries substantial influence.
Purchasing bank repossessed property or property headed in that direction can be highly profitable for any investor. Even though this is a logical or practical option, it is often overlooked. A wise buyer should take advantage of this supply in distressed property before a higher demand for repossessed property raises the asking price.