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Investing in repossessed properties

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Your Investment Property | 14 Feb 2013, 12:00 AM Agree 0
Repossessions may be bad news for struggling mortgagees, but for investors it can be a ripe opportunity to snap up discounted property. But how can you do it?
  • Kazz | 14 Feb 2013, 02:41 PM Agree 0
    Property is property! Unless it is your private residence, it is an inanimate object, a tool for you to work with. Does it do the numbers? Can it be valued added to? What is the possible rental yield, vacancy rates etc? Location to services? The same questions that need to asked and answered if you were buying the usual private treaty sale also need to be answered with this property. Dont get hung up with the emotion of it. If you are going to create a rental property - remember that you are supplying a home for someone else to live in. This is a service to the community. If the property is going to be your PPOR, then it will be your home, love it for what it is, a place for you and your family to call home. In each instance this property fulfills the role you require of it irrespective of the emotion you may place in it just because it is a morgagee in possession sale. Move on from that and give the property a new lease of life allowing it to be a home for someone, thats what it was built for!
  • Jenny | 26 Feb 2013, 01:16 PM Agree 0
    Well said Kazz! I totally agree.
  • Jhai Mitchell | 15 Jun 2013, 04:02 PM Agree 0
    Kazz you owned this answer!
  • Bitey311 | 05 Jul 2013, 11:58 PM Agree 0
    As an ex-banker I can safetly say that it is an urban myth that banks sell properties they re-possess at a cheap price. Banks are required by law to obtain the highest price possible on all properties they re-possess. This includes the cost of any renovations required to bring a damaged property back to a saleable state.

    You might get a cheaper price off someone selling a property before the bank takes possession due to mortgage defaults. In this case you are simply buying at a time when an owner is experiencing mortgage stress and is forced to lower thier price for a quick sale.

    Happy hunting!

    Cheers!
  • madeline yacoub | 09 Oct 2013, 12:28 PM Agree 0
    my husband and i run a development company in Sydney NSW. we are desparately looking to buy a repossessed development site .
    what do you have to offer and in what area please ?
    please contact me on Madeline 0401 037009 or Mark 0419 297707
  • madeline yacoub | 09 Oct 2013, 12:30 PM Agree 0
    my husband and i run a development company in Sydney NSW. we are desparately looking to buy a repossessed development site .
    what do you have to offer and in what area please ?
    please contact me on Madeline 0401 037009 or Mark 0419 297707
  • Davo | 26 Nov 2013, 01:25 PM Agree 0
    Hi Bitey, you're correct in saying that the banks are legally obliged to achieve the highest price possible and I'm sure that they think they're doing a good job at it, but the fact is that repo's often present great opportunities to buy well below market value. I recently picked up vacant land for $185k which was sold mortgagee in possession and flipped it 17 days later for $240k. But hey, I'm happy for everyone to keep on thinking it's an urban myth.
  • Leanne | 23 Jan 2014, 01:50 PM Agree 0
    I am going overseas in a couple of days so I would like someone to contact me after March 8th 2014. Cheers
    Leanne
  • Richard | 24 Jan 2014, 12:17 AM Agree 0
    I had a property reposessed full recondition after a fire by strata insurance just sold for market value, do I get the difference from what I owe the bank?
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