Making A Great Investment With House Repossessions

Investment!

By: Anna Stenning

There's no getting away from it - the housing market is weaker than it's been in many years, and this can make investors wary about putting their money into property at the moment. It's understandable; the current climate can make it seem like a large initial outlay for a minimal return when the improvements are finished and the house is sold.

While we are all used to viewing property as an investment and expect to make a substantial return when we sell, whether it is when we are moving home or have simply purchased the property for investment purposes, the property ladder is practically a tradition in Britain, but with the market the way it is right now, the poorer return can make the process seem like a waste of time. There is a way around it, however - with house repossession on the rise, the opportunity to purchase a property for as little as half of its true market value is certainly enticing for investors.

Purchasing property as a result of house repossession is an excellent way to increase the return on the investment you have made, whatever the size of property you purchase, whether you do so for a fast turnover or are planning to spend take more time over it, waiting out the recession whilst making some improvements to the property in the hope that you will make a significant profit.

Whether you acquire it from a house repossession auction or from an agent, buying property in this manner is significantly cheaper than it would be on the open market, meaning that you can purchase a home which would normally be a fair way out of your price range on your current budget. This can mean that when you do come to sell the property - especially if the market has picked back up by then - you stand to make a much larger return than you would typically.

Although it can seem like a risky time to invest in property, the amount of property which is available at prices far below their actual market value thanks to house repossession makes both investing in the field and taking another couple of rungs on the property ladder easier than ever. Whether you are simply looking for a new home or are looking for a house to buy, improve and sell for a profit, a repossessed property brings the option closer than ever for many people.

Article Source: http://www.propertymagnate.com/articles


Anna Stenning is a property market analyst with many years of experience in the industry. Find out more about house repossession at houserepossession.co.uk/

The Recession Is Making Repossessions Soar

The Recession Is Making Repossessions Soar Article Author:
Michael Challiner

It is a fact that one family evicted from their home every 10 minutes as mortgage lenders push up repossessions by 92 per cent. One family is being kicked out of their home every ten minutes after failing to pay their mortgage, figures revealed yesterday.

The Financial Services Authority, the City watchdog, has published statistics, which show that repossessions have virtually doubled over the last twelve months and is running at a rate of almost 60,000 a year.

The Conservatives have warned that these soaring numbers of repossessions represents only 'the tip of the iceberg'. As the economic crisis dramatically worsens even more families lose their battle to keep their roof above their head.

With many businesses going bust every day, unemployment is surging. And unemployment is one of the most common triggers for creating financial crisis for families and subsequent repossession.

A spokesperson for the housing charity "Shelter", said: 'These figures are not just statistics. They represent heartbreaking stories of real people losing their homes.' He then criticised the Government's attempts to stem the rising tide of repossessions, by saying they will help only 'a small number of those in trouble'.

Of course actual repossession is just the final step for many. The FSA's figures also show that mortgage arrears have spiralled. Unless many of these families can find the money to pay their debts, they too will face repossession. Some families are in such dire financial straits that their mortgage arrears represent more than 10 per cent of their total mortgage.

The Conservative's housing spokesman said: 'The Government's famous boast that they have ended boom and bust cycle, will provide absolutely no comfort for the thousands of families who will be repossessed over the coming year.'

A spokesman for the Lib Dem's said: 'The depressing fact is that the soaring numbers of people in mortgage arrears suggests that matters will get a lot worse.'

According to figures from the Department for Communities and Local Government, the future looks bleak for families who lose their homes. A record 2 million families, equal to about 4.6 million people, are on the council house waiting list in England.

Some commentators have accused the Government of sitting back while the social housing waiting list has exploded. The Department for Communities and Local Government insisted that the Government was doggedly doing everything possible to protect homeowners.

This presumably includes the Homeowner Mortgage Support Scheme, which has been delayed by months and months but which is now available. The Scheme is designed to help those who are having problems meeting their mortgage repayments but who are likely to get their finances back in order in the relatively near future. For example, those who can no longer work overtime, those who have had their working hours cut, those who had two part time jobs but have lost one or are relying on one family income instead of two.

Those who are accepted for the Scheme will see their lender delay some of the monthly interest due on their mortgage. This will enable monthly payments to be reduced for up to two years. It is important to appreciate that the money is not written off - it will eventually have to be repaid with interest.

Under the Scheme borrowers switch to an interest-only mortgage, if they have not already. Their lender will then get applicants to commit to paying as much as they can afford each month. The lender may also add other conditions. For example, they may stipulate that applicants should only have a small amount of savings. And not all mortgage lenders are participating in the Scheme. So whilst anything that helps families in financial trouble, the Scheme is very limited in who it can help.

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