Welcome to BuyAssociation.co.uk

Buying distressed sales

Things to look out for

Although buying a distressed property from any of the sources listed above can lead to a bargain, there are a few things to make sure you look out for in order to be sure you are getting the property you want. For the most part, these are the same checks that you should be carrying out in any case, but in the excitement of chasing a potential bargain it is easy to be persuaded that you can cut a few corners.

One of the most important issues is to make sure you have all of the legal checks carried out by your own, independent lawyer. In many ways this is even more important when buying a distressed property as you need to know exactly what the past history of the property is and how this may affect your purchase and you ability to sell it on in the future. This doesn’t mean that all distressed properties have something to hide – in fact the majority will have clean title, but you need to know where you stand from the outset.

As mentioned previously, location is a hugely important factor in choosing your property overseas – distressed sale or not – so make sure you do your research. If you are offered a property at what seems like a very low price, it may not be just because the vendor needs to sell quickly. The low price of the property may also cover up the fact that it is not in a desirable location, or in an area where it is difficult to rent out, or that is difficult to get to. Make sure you check all location details as thoroughly as possible and don’t buy unless you know exactly where the property is.

Finally, it is worth taking extra care to make sure you have a proper survey carried out. If the vendor has had money worries for some time, it is possible that running repairs have not been carried out or have been done on the cheap. This goes equally for fundamental aspects like the condition of the roof and fabric of the property and also for the decorative state of the interior. You may need to spend some money on the property in order to bring it to the standards you need to be able to live comfortably or rent it out – in which case you need to factor these costs in to your final budget.

And finally…

Distressed sales can offer the opportunity for buyers to pick up the property overseas they have dreamed of for significantly less than the market valuation, but as with any purchase of overseas property it is necessary to make sure you make all of the appropriate checks before handing any money over.

For most people, the best advice is to use the prospect of distressed sales to get the property you wanted to buy anyway, but at a reduced price. Stray too far from that ideal in location, property size or type, and you may not be getting quite the bargain you hoped for.

Contacts
International Law Partnership - www.lawoverseas.com
Azure International - www.azureinternational.co.uk

More pages

Page 1: Introduction
Page 2: Things to look out for

Holiday home insurance with Staysure - the over 50's experts

Speak to the experts to find your perfect home in El Gouna. Luxury apartments and villas on Egypt’s Red Sea Coast. Life as it should be. www.ancientsandsresort.com

Marbella apartments with 110% finance 50 per cent discount from developer prices, 300m from the beach

The best villa holidays from James Villas with our hand-picked villas and all the support you need in resort, we're the number one choice