What Unique Features make Foreclosed Homes the Best Real Estate Investment
There are many unique features which have made these properties a profitable investment venture which include highly reduced asking prices, large margin for negotiation, tax credit incentives, down payment assistance as well as housing loans at low interest for first time buyers.
Unique features of foreclosed homes:
Listed below are some of the unique features of foreclosures which make them a highly viable real estate investment:
Highly reduced asking prices – The most favorable aspect of purchasing a repo home is that the asking prices of these properties are nearly half of their original values. In places like Florida a large number of waterfront homes that have been foreclosed are being sold below $300,000 making them affordable to modest budget buyers for the first time ever.
Large margin for negotiation – As lending agencies are being burdened with more and more repossessed homes, they are willing to lower their asking prices for properties that have been in the market for a long time in order to clean out their inventories. This situation is therefore a very favorable one for home buyers who can now negotiate with the sellers for lower closing costs as well.
Incentives for first time buyers – All over the states of U.S the FHA (Federal Housing Authority) is offering special incentives to home buyers who are interested in purchasing repo homes through down payment assistance as well as tax credit abatements. There are also some special incentives on offer by the U.S Department of Housing and Urban Development through which buyers can avail heavier discounts on fixer upper homes.
Low interest housing loans – At present more and more banks are floating various low interest housing loans for buyers of foreclosed homes in a bid to decrease backlog on the mounting number of properties that are being repossessed from defaulters. Prospective buyers can now compare the various loan interests being offered by banks and select a plan that is comfortable and allows for modifications in the future.
With their low asking process and a series of incentives being offered by the government as well as lending agencies it is no surprise that foreclosures have become a very popular real estate option in the present market. So if you have been thinking of making a profitable and wise real estate investment in a prime location go ahead and look up a suitable property under foreclosed homes right away.
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ABOUT THE AUTHOR
Fiona Livnat is an author with expertise in real estate foreclosures. She has over ten years of experience in writing about foreclosures. Her commitment to help people is reflected in her writing. For more details please visit foreclosed homes.