We are experiencing a very interesting market at the moment and lately, our landlords have been asking us, where we think the best deals will soon be.
One way of finding properties under market value, is to look for mortgagee sales.
After all, the profit is made when you buy right!
If the market doesn’t pick up next year, these sorts of sales will be more plentiful.
Mortgagee sales are when the owners have defaulted on their mortgage payments to such an extent, that the bank has taken over the property to recover the debt.
Here are a few tips to help savvy investors find properties that are under market value:
• Type "mortgagee” or ”mortgagee in possession” or "forced sale” in search engines when looking through real estate sites.In some instances you may be able to set up alerts
• Most of these sales are done via auction, to keep the process as transparent as possible, as banks have an obligation to act in a fair and reasonable manner
• Talk to a buyer’s agent, as they often have a vast network to tap into.
• Mortgagee sales can also be identified via any sales paperwork, as they will have the name of a lender or public body as the vendor.
• Be prepared to act fast- have your finance in place beforehand.
• Make sure that you have guaranteed vacant possession and that there are no outstanding rates, body corporate fees etc, on the property before signing anything.
If you need to secure finance for your next savvy purchase, contact firstname.lastname@example.org and we will arrange for a mobile lending specialist from our trusted finance partner to contact you for a no obligation discussion.
Wednesday, 10 October 2018