There are advantages in opting to purchase bank repo property that are not offered during a conventional sale.
The main attraction of this type of property is its low price.
Investors purchasing bank repos frequently find that the selling price can be as much as 60% below the property's true market value. This figure is obviously variable, and will depend on several things, among which are the repo property's location and its state of repair. The latter gives the investor leverage over the bank when negotiating a selling price, since it is in the bank's interest to be rid of bank repos as soon as possible. It is in the purchaser's interest to make an early inspection of any bank repo properties in order to evaluate the possible cost of any renovation work.
Once you've acquired a bank repo property and transfer has taken place you can start using it to earn extra income. If you have no intention of living in the property yourself, you have a choice of either renovating it and then reselling it at a profit, or of renting it out. Rental income can be offset against any bond repayments due on the property, and where this is the case there is usually enough surplus to form a source of passive income. Owning a bank repo property is one of the best investments you can make, especially where you wish to achieve early financial freedom.
You can read several interesting articles on bank repossessed properties in our FREE newsletters.
Bank repo properties can be found all over the country, and the fact that they sell for a price that is well below their true market value makes them of interest to both experienced investors and to first time buyers. Bank repossessed property that is located in a high rent area will be of particular interest to both first time buyers and to seasoned investors. The former will find that they are paying less each month than if they were renting a similar property. Investors in property in such an area, on the other hand, will find that they have an immediate net passive income. Purchasing such a property as a vacation home is another alternative as you can rent out the property when not using it yourself.
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