A property being advertised by a mortgage for sale or under a foreclosure is considered as a distressed property. These are available in a much lower price in the market and hence are lucrative to prospective homeowners and property buyers. They often prove to be good investments if certain factors are kept in mind which if not taken care of might make the buyer’s investment a liability.
Here are a few tips that should help buyers reap a profit out of investing in a distressed property which he might come across while searching for residential projects in Kolkata.
- Getting Help From An Experienced Realtor: A property under foreclosure will prove to be a good investment if the buyer knows enough about the real estate business. However insufficient knowledge should not prove to be a hurdle as long as the property buyer receives guidance from a realtor experienced in such cases or hires a contractor. Inspite of taking professional help buyers should investigate themselves and know the reason for which the desired property is distressed.
- Negotiating With A Lender: The main drawback of buying a distressed property is dealing with its condition. Most of these properties need major electrical and plumbing repairs other than damaged walls and the like. So buyers often need financial help. A lender comes in as a saviour in such situations to create a good loan prequalification. But a clear negotiation needs to be done between the lender and the buyer keeping in mind the location of the property and the appreciation of the value in future in order to make the investment profitable. These kept in mind, investing in such apartments in Kolkata should prove profitable.
- Importance Of The Mortgage Rate: Buyers should keep in mind the mortgage rate while planning on investing in a distressed property. Buying a property in a residential project in Kolkata on low mortgage rates and then selling it in a high price is bound to make the transaction a profitable one. But of course a buyer should look for all the unknown and hidden liabilities as well to make the investment worthwhile.
Apart from following these basic guidelines a buyer should also consider the paperwork involved with such transactions. Especially in case of a distressed property the paperwork takes a lot of time which requires the buyer to be patient. One should take into account all the legal documents and should keep a record of all payments and papers related to the property. Not to mention but every document should be checked and rechecked in order to avoid any unwanted situation. If a buyer is not confident enough to take the responsibility of working directly with a bank then he can even hire a real estate agent to do that for him or participate in an auction even. If a prospected homeowner follows these tips he will surely face a profit while investing in apartments in Kolkata even if the property is a distressed one.
By Ruchi Realty