Buying a Foreclosed House: Top 5 Pitfalls

Buying a house that is in foreclosure is often touted as a way for both owner-occupants and investors to get a great deal on a property. However, the potential financial rewards are not arrived at without a significant amount of hard work.

Foreclosed properties have some common problems. In addition, there are some standard difficulties you may encounter in purchasing one. While foreclosures can be great investments as fixer-uppers, either to live in or resell, they often come with baggage.

Key Takeaways

  • However, the potential financial rewards of buying a foreclosed property are not arrived at without a significant amount of hard work.
  • Many homes in foreclosure have been poorly maintained and may have structural issues, or water or mold damage; some may be in violation of codes or other standards.
  • Vandalism can also be an issue, with thieves or the prior owners sometimes taking fixtures, appliances, windows, or anything
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3 Pitfalls That Can Kill Your Real Estate Investment

Countless of people have been known to have made their fortune through real estate investing, and you might have heard of a friend, relative or colleague who likewise, have achieved a significant increase in their net worth when they sold off a property they have invested in years ago. Others have found financial freedom through their property investments, as their portfolio of well-chosen properties has given them a sustainable flow of rental income. Robert Kiyosaki of Rich Dad Poor Dad fame is one of the major advocates of property investing.

However, just like investing in any other assets, investing in real estate requires thorough planning, preparation and implementation work. Here are some common pitfalls to avoid before you invest in your first real estate.

Pitfall #1: Investing in real estate is not a get-rich-quick scheme

Investing in real estate is often promoted as a get-rich-quick scheme by the so-called gurus … Read More

How Can I Keep away from Property Pitfalls?

In case you are planning to buy real estate in New Zealand, there are some simple steps to comply with to ensure you get the most effective return and delight out of your dollar. However the couple, now retirees on a fixed income, say the newest tax invoice for their property — valued at $1.2 million — is forcing them to rethink their golden years, promote the beloved home and transfer. Buy it, use it, reside on it, improve it, and find it irresistible. Land is one of the best investment you may ever make, for yourself and posterity.

A great way to calculate the quick sale appraisal worth in your property is by paying for a home inspector to get value estimates. Depending on the present use allowed for the property, you would possibly must have the site rezoned which is a complicated process and typically cannot be executed.… Read More