Most home buyers tend to associate buying a foreclosed property with getting a steal of a deal. This is no doubt true, but there are also a number of potential pitfalls that normally come alongside it. The same is true when it comes to renting a house.
Each of them has its own advantages which we’re going to tackle in this article.
Deciding Between Purchasing a Foreclosure and Renting a House
If you’re wondering about the pros and cons of buying a foreclosure vs. renting a house, the most obvious thing is that renting is a lot easier compared to buying a house. You only need a few days to be approved for a home rental. Meanwhile, looking for a good foreclosure deal may take a few months. Also, there are a number of fees and other financial obligations you need to deal with when opting to buy a foreclosed property.
However, buying a foreclosure is actually a long-term investment. While it entails a massive financial payment compared to house rentals, it does provide you with tax advantages. You can even build equity, which in turn will help increase your home’s market value in case you decide to sell it.
Why Go for Foreclosed Properties?
The reason why you should opt for a foreclosure is because it often has a significantly lower price compared to the actual market value. As long as you do proper research, you’ll eventually find yourself a good deal. There are thousands of foreclosed properties available due to the housing crisis, and most banks even have foreclosed homes up for grabs. There are even a number of online foreclosure listings and auction sites such as https://www.hudsonandmarshall.com/foreclosures.
That aside, you can also avail of the following advantages:
- Home upgrades and renovations – by investing in a foreclosed property, you have the freedom to make upgrades and renovations to suit your taste. If you’re lucky enough, you may even come across luxury houses and real estates that are offered at incredibly affordable price ranges.
- Discounts – most banks that offer foreclosed real estates for sale will often provide discounts in order to sell those properties. After all, the longer the time a property will take to sell, the more it will cost them. This often includes paying for the maintenance and taxes.
- Market appreciation – in the best case scenario, investing in a foreclosure is financially advantageous considering that you can get the property at a lower price. In the event its value appreciates and you choose to sell it, you’ll be enjoying massive ROI.
Make sure you have a mortgage pre-approval before you decide to invest in a foreclosed property. However, if you have cash on hand, the better. You can find a number of reliable online sources for searching foreclosure listings, such as https://www.hudsonandmarshall.com/foreclosures.
Investing in a foreclosed property is considered a good investment as long as you have the down payment ready. Whenever you decide to go for a home rental or purchase a foreclosed house, make sure you decide on which works best for you and your family. Also, don’t forget to factor in your current financial status.