Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
US Presidential Election Year Stock Market Seasonal Trend - 29th Nov 24
Who controls the past controls the future: who controls the present controls the past - 29th Nov 24
Gold After Trump Wins - 29th Nov 24
The AI Stocks, Housing, Inflation and Bitcoin Crypto Mega-trends - 27th Nov 24
Gold Price Ahead of the Thanksgiving Weekend - 27th Nov 24
Bitcoin Gravy Train Trend Forecast to June 2025 - 24th Nov 24
Stocks, Bitcoin and Crypto Markets Breaking Bad on Donald Trump Pump - 21st Nov 24
Gold Price To Re-Test $2,700 - 21st Nov 24
Stock Market Sentiment Speaks: This Is My Strong Warning To You - 21st Nov 24
Financial Crisis 2025 - This is Going to Shock People! - 21st Nov 24
Dubai Deluge - AI Tech Stocks Earnings Correction Opportunities - 18th Nov 24
Why President Trump Has NO Real Power - Deep State Military Industrial Complex - 8th Nov 24
Social Grant Increases and Serge Belamant Amid South Africa's New Political Landscape - 8th Nov 24
Is Forex Worth It? - 8th Nov 24
Nvidia Numero Uno in Count Down to President Donald Pump Election Victory - 5th Nov 24
Trump or Harris - Who Wins US Presidential Election 2024 Forecast Prediction - 5th Nov 24
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24
At These Levels, Buying Silver Is Like Getting It At $5 In 2003 - 28th Oct 24
Nvidia Numero Uno Selling Shovels in the AI Gold Rush - 28th Oct 24
The Future of Online Casinos - 28th Oct 24
Panic in the Air As Stock Market Correction Delivers Deep Opps in AI Tech Stocks - 27th Oct 24
Stocks, Bitcoin, Crypto's Counting Down to President Donald Pump! - 27th Oct 24
UK Budget 2024 - What to do Before 30th Oct - Pensions and ISA's - 27th Oct 24
7 Days of Crypto Opportunities Starts NOW - 27th Oct 24
The Power Law in Venture Capital: How Visionary Investors Like Yuri Milner Have Shaped the Future - 27th Oct 24
This Points To Significantly Higher Silver Prices - 27th Oct 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

UK Repossessed Houses: do They Still Represent the Best-valued Properties?

Housing-Market / UK Housing Apr 27, 2017 - 05:11 AM GMT

By: Submissions

Housing-Market

Jake Moore writes: “Repossessions typically come to market 30% under their market value. “  - This commonly used statement is absolutely correct, however, doesn’t fairly paint the picture of the risk vs reward.

Let’s start with desert; reward!


  • Low prices. Obviously, low prices. Due to the nature of repossessions, there are enormous discounts that can be achieved. When the lender, being a bank, mortgage provider, or whoever, repossesses the property, they typically look for a quick sale to recover the loaned funds. Which is to us, an opportunity!
  • Less waiting. As mentioned above, lenders typically look for quick sales. If you have the funds and are looking to get involved in a property investment, this can be pivotal. You can monitor auctions and when the right property comes along, you can become the owner within weeks or even days.
  • Highest bid wins. Repossessions are usually sold through auction. This means you do not have to have the right connections or go through other companies to get the right deal. Once you are in the room (or online auction (http://repossessedhousesforsale.com/), the highest bid wins!

Obviously, if you understand, or have the right advice about valuing a property’s worth before auction, then there is a killing to be made in the market.

However, you must understand or have the right advice, as there are several ways problems can arise in this unregulated market…

  • Unpredicted renovation costs. The rule of repossessions is: They are sold as they are. Many houses will have hidden damages, if these are structural damages it can result in a renovation bill bigger than the discount!
  • Gazumping. If you buy outside of auction, gazumping is a common problem. Gazumping is when a deal has been agreed and the seller pulls out last minute and transfers the sale to another buyer. This tends to happen with repossessions, as the property is a collateral of a loan meaning the lender is obliged to use their best efforts to attain as higher price as possible for the property so will usually take the biggest and easiest sale.
  • Less time. Although this exact point is listed as a benefit above, it can also be a negative, dependent on the buyer. If you are not well practiced in valuing properties there is less time to inspect and find the flaws that save you from a bad investment.
  • Over-bidding. Despite the potential for a bargain, you need to have complete confidence of the value of the house and stick to your budget. Too often a buyer will commit at auction and later discover the properties actual value is less of that which they paid.
  • Competition. It is now common knowledge that repossessions represent some of the best property value available in the industry meaning competition is thick, so always be on the lookout. However, in a post Brexit Britain, we may find ourselves in a relatively competition free industry again if, as many are predicting, the housing market should fall!

As a repossessed property specialised, I would recommend repossessed property over any form of property investment, if you can find the right deal. But there are drawbacks, which need to be carefully considered and overcome!

By Jake Moore

Copyright © 2017 Jake Moore - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in