The rate of home repossessions in Australia is rising, giving buyers access to a bigger range of properties for sale. Here are some things to consider if you’re looking at buying a repossessed property down-under.
Location, location, location
When you considering buying a house, think about who will live there and whether that location suits their needs. For example, if you are buying a rental investment property, who would you like to rent to and where do they want to live? Is it close to the important things for them – schools, shopping, public transport? Determining how you will use the home will help you ascertain whether it is in a good location or not.
What is the current appraised value of the property? Are you happy with it? Do you think the property could gain value after renovations? These are things to consider when determining whether a repossessed property is good value or not.
Closely inspect any property you are thinking of buying so you know upfront how much you might need to spend to make the house liveable, either for you or your tenants. This may include new carpets, a paint job, structural or superficial repairs – add these costs to the purchase price – is the house still good value?
As most repossessed properties are sold at auction, consider whether you want to bid for it yourself or pay someone to do it for you. A professional will stay within your budget and avoid ‘bidding fever’. They can also assist you to determine whether the property is worth what you might pay for it.
This article is brought to you by Tomorrow Finance, Australia’s independent home loan comparison website.