Buying properties can be a bit of a tricky business; the housing market is as vast as it is confusing, there are so many different types of properties that are available to you and all of these come with their own statuses, so how do you know that you’re not getting ripped off? If you don’t know much about the housing market, there are 3 types of properties that go cheaper than any other, so read on to find out about them!
Foreclosed
What is a foreclosed property? Not a lot of people will have heard about these, so it’s why we’re covering them here. A foreclosed property is also known as a bank property; when someone cannot pay back a loan, after all other routes have been exhausted, the bank will take items worth up to the value of the loan. For bigger ones, this often means that people’s houses are repossessed and owned by the bank and this is what foreclosed properties are. These properties are often sold at a substantially lower price than is usually expected, simply because that bank wants it gone as soon as possible because they need the money from it, so you should take advantage of this!
Unrenovated
Have you ever noticed how property investors will always buy a house that is unrenovated and is in a state of disrepair, renovate it and sell it on for much more money than they put into it? That is how they make money, so you can save loads by getting an unrenovated property! Unrenovated properties are much less than the regular renovated price simply because people can charge more for a house that’s ready to move in straight away. If you’re looking to save money then buy an unrenovated house and do it yourself because you’re going to save thousands of dollars on the price of the house, albeit at the cost of not moving in straight away.
Ex Display
Ex display homes are not up on the market for very long when they get posted and for a good reason too! When new houses are built, one or two are use as display models; lots of people will come in and out of here to visit it, meaning that the property is not strictly “new” as loads of people have already been inside it so the price of it is drastically decreased. Even though no one has lived there before, the price drops, meaning that you can get an essentially brand new house for a second hand price!
Any of these property types are good for saving money, get an unrenovated one and do it yourself to save you tens of thousands of dollars, maybe buy an ex display house to get that new house feeling for the second hand price, or get a foreclosed house to get a second hand house at a fraction of the price! If you’re looking to play the property market rather than just buy a house to live in, read this to get it right from the outset!