Repossessed Houses for Sale – How to Choose A Winner

There are tens of thousands of repossessed houses for sale in the UK at any one time. Some are considered to be in excellent purchases whereas others require a great deal of work doing to them to bring them up to rentable standards. You need to work around your budget and buy the best repossessed houses for sale in your area that you can.

To make things a little easier you might want to consider the following points.

Look at who owned the property before it was repossessed

Older couples, families and even other buy to let landlords will have kept their properties in good condition and so there should be very little to do internally or externally. You may need to redecorate using neutral colours, and maybe even modernise the bathroom and kitchen but the costs involved in these jobs will be minimal compared to the savings you’ll make buying repossessed houses.

If you’re looking for a ready-to-go buy to let property then you should definitely try to find repossessed houses for sale that were previously owned by landlords and used as privately rented accommodation. This type of repossessed property won’t be as cheap to buy as some other repossessed properties but you’ll know from the off that it is in a rentable condition.

Consider the location of the property

It’s pointless buying repossessed houses for sale at greatly reduced prices if they are in an area of your county that isn’t commonly associated with the word ‘desirable’. You may very well save 40% on the market value of a property but if you have to wait 6-12 months to rent it out it really isn’t financially viable.

With this in mind it’s worth spending a little bit more on repossessed houses for sale in sought-after areas than it is a cheaper property in a less desirable location. You’ll have a much better chance of letting the property quickly, so saving you the added expense of having to pay the mortgage.

Remember your target tenants

Before even thinking about buying a property you need to consider who you want to target in terms of tenants. Are you looking to buy a student house, a family house, an up-class apartment for professionals or a regular flat for working tenants?

Once you decide this you can look at repossessed houses for sale. Having a target tenant in mind will narrow down the options and make the choosing process much easier. You’ll also be able to go to property auctions with specific properties in mind, and hopefully you won’t get carried away when you see the savings you can make and think about the potential profits coming your way.

In summary

With so many repossessed houses for sale at the moment it can be quite difficult to choose the ones with the best potential. Try to choose a property that requires little or no major work doing to it, and that is in a desirable location. If you get these two factors right and you remember what type of tenant it is you want to target, you should find the process an easy task.