Understanding of property market is essential when it comes to investing in real estate property business. There are different types of properties available in the property world like condominiums, apartments, single family homes, multi-family homes, single storey homes, multiple storey homes, townhouses and more. Apart from all these types, their condition matters a lot it directly affects the value of the property.
Investors should know about the distressed properties available in the market. Buying such properties for fix and flip is the most profitable way to invest in real estate property business as they are available in low market value. Though these properties are much different from fixer-uppers they need more renovation and usually find in bad condition. Whereas fixer-uppers are available in the property market in much better condition than distressed property. Though investor should take advice from the registered valuer NSW to know about the property before making an investment.
If we explain you the actual definition of the distressed property then -
“Those properties which are under a foreclosure order or at the risk of it. Usually, they are available in the market at a lower price than its actual market value.”
Here in this post, we are explaining the advantages of having a distressed property.
- Available at low price -Real estate property business is all about making money. Real estate investors are seeking to get the property at a low price and distressed property is one of the ways to get the property lower than the market value. Basically distressed properties are foreclosure property thus banks, mortgages or homeowners want to sell the property as soon as possible. Thus they get ready to sell the property at a lower price. This is the biggest advantage for the real estate property investor as they can get the distressed property at the low price and then sell it later on the high price.
- Earn high profits -The distressed properties carries high potential as the value of any real estate property increases by the time. And secondly, if investor renovates it, repair it then after fixing and flipping its value will get increased. Selling flipped house is definitely going to give high profits to the investor. Apart from all these if the investor chooses to convert the distressed property into the rental property then surely investor or owner will get fixed monthly rental income which showcases the potential for high profits of the distressed property.
- Easy to get finance for such properties - Banks and lenders are in hurry to sell out the distressed property. That the reason they even sell the distressed property at the low price. Also on buying the distressed property for an investment purpose, you could get it at a low-interest rate, lower mortgage payments and closing costs.
These are the pros of choosing a distressed property for investment purpose. Hire the property valuers NSW to know the actual market value of your property. Feel free to contact us.