4 Channels to find secondhand houses and condos for investment

Are you interested in investing in secondhand houses and condominiums but don’t know how to get started? Today, we will introduce 4 channels where you can find secondhand properties and start investing for the future wealth.

Novices might want to start with direct purchase from the property’s owner. Start searching areas in the vicinity whether there are on-sale properties or not, or look through advertisements, printed materials, or even in a website. After you find a desired one, go to inspect the actual site.

The benefits of choosing secondhand properties in the vicinity are that you are familiar and have insightful knowledges about the location; your judgement would be clear whether the property has a potential to be rented or sold afterwards or not. Plus, you will have a chance to know the history of that property before you decide to invest in it.

Pros of this channel: free from commissions as you don’t purchase through property agents; price is openly negotiable.

Cons of this channel: you are responsible to all required documents, which can be troublesome if the property turns out to have some unsolved issues: the property might be legally inherited to several individuals, the existing tenant denies to move out, the seller is not the real property’s owner and the actual owner doesn’t have intention to sell the property, etc.

This is another method in finding secondhand properties, suited for those with some experiences in real estate investment. Finding properties through agents will give you broader options in terms of property types and locations. Nowadays, there are a great number of property agents available, servicing both purchasers and renters with convenience – like a great shopping complex where you can find secondhand properties.

As a matter of fact, properties sold by agents need to pass certain qualifications and must be conformed to the owners’ intention to sell or rent. Likewise, there will be less problem about disguised owners. Agents also act as a middleman between you and the owner – doing all the paperwork for you. With this channel, many investors concern about commission that it may be too high. In reality, commissions are not that high and each agent has a different rate. You can ask this number from all agents, and choose the one that gives a satisfying rate.

Don’t turn down the investment merely by presuming the cost is too high. Study all the information thoroughly first, a considered decision in the following time is never too late.

Pros of this channel: convenient in finding secondhand properties; broader options to select in terms of property types and locations; paperwork and transactions are handled by the agent.

Cons of this channel: more difficult to negotiate the price and, hence, lower discounts; charged with commission.

NPA (Non-Performing Assets), or assets pending to be sold by financial institutions, is another channel where you can find secondhand properties to invest. NPA are massive in options for you to choose and is a channel which costs lower than finding properties from Legal Execute Department. This is the channel where you could potentially find a high-value property with low price, though it takes some time find one. NPA is a channel suitable for experienced investors, not beginners, because there are a massive number of properties to choose in terms of types, locations, and grades. Novices with insufficient knowledges could make a wrong decision and, hence, create losses instead of profits.

Pros of this channel: possibility to find high-value properties with low prices; massive options; special home loan offerings by the bank, in case of bank’s NPL.

Cons of this channel: properties might be excessive and cause investors difficulty to choose; the property might have been more decayed than those sold by agents or owners; beware of banks’ properties which are still dwelled by previous owners – you would have to waste time prosecuting them to get out of the property.

This is a channel where investors can create generous amount of profits, and has the lowest cost of investment compared to the three previous channels. The price of secondhand properties in auctions hosted by Legal Execute Department could be 30-50% lower than the market price. This channel is suitable for professional investors as the procedures to get properties are quite complicated.

Investors who know how to select a property, auction’s procedures, appropriate price, and when to stop bidding, are suggested to invest in this channel.

Beginners who are interested in this channel, we suggest you to go observe the auctions hosted by Legal Execute Department first. Try to learn from experienced investors at the site about each procedure and, when you are ready, set off your own moves.

Pros of this channel: chance to find high-value properties with low prices.

Cons of this channel: high competition especially in valuable properties; properties might be in disrepair; prosecution is required if the previous owners persist to live in the property – time consuming.