by: Mark Jenkins
Most individuals recognise that investing capital in a repossessed house is an excellent system to make money and, what with the economic downturn predicted to carry on through 2011, there will be heaps of openings around. And, in actual fact, buying and selling property is no different to buying and selling any other commodity. One piece of advice, though, don't accept everything you read! Businesses undertaking to find you properties at, say, 70% below market value (BMV) are to be viewed with caution.
As is all too obvious, we are now in a depressed property market, which should be excellent for repossessions.
There will be extra 'distressed' sales around, that is people who find themselves in economic adversity are inclined to give up and stop paying their mortgage, consequently putting an additional repossessed house on the market.
However, there will be a smaller probability of you selling-on your bargain buy, notwithstanding how well you have decorated it. Ultimately, a property is only worth what the consumer is prepared to pay.
Yet, there is still capital to be made, without doubt as the market picks up from 2012 onwards you will be in a better place to sell any well-priced repossessed property you buy this year.
The Buy-to-Let Market
All the latest figures show a growth in the buy-to-let market, which increased by 7% last year (2010). And given the relentless financial pressures it is probable that the figure will rise once again in 2011.
Yet, as with any mushrooming market, prices are being pushed down. Most rents have fallen by 0.3% from the beginning of this year – the typical rent, by the way, is £682 per calendar month. However, monthly rents are still 4% higher than they were at this time last year.
Don't forget that the buy-to-let sector is a lawyer's delight – which is possibly why loans for buy-to-let aren't easy to find. There are some specialised lenders but they are thin on the ground. This doesn't mean that buying a repossessed property to let is out of the question, what it means is that you will need to find a sector-specific.
About The Author
Mark Jenkins is a writer for HouseRepossession.co.uk. Visit us for more guidance on finding repossessed houses for sale and best remortgage deals.