10 Reasons To Invest In Canada Foreclosure Homes

Investing Canada foreclosures can be a great way to enter the real estate market with relatively low risk. Here are the top 10 reasons to consider investing foreclosure in Canada.

1. Motivated Sellers. when a home is in the foreclosure stage (particularly the pre-foreclosure), the homeowner is eager to sell and sell FAST before the bank takes over the ownership. This is because Foreclosure will seriously damage the home owner’s credit ratings for years.

2. Below Marketing Price. with propery values bottoming out in USA, Canada housing price still keeps at an extremely high level in many places. Foreclosure is a great way to get a propery at a massive discount. We are talking about 50% off the marketing value!

3. Massive Profits. The risk of foreclosure investment is to take the loans and cost a long time to flip the property. However, the return is as long as you bought the foreclosure under a deep discount (always true for most foreclosure) you will always make massive profits by re-selling (five figures net profit).

4. Low risk investment and high return. As long as you know the basics, do your research properly (e.g., analyze the property real marketing values) and check the house completely before you buy, you are in a safe position to make lucrative profit. No other types of investments can do the same. Stocks exchange and currency exchange are highly risky with the requirement of professional expertise. Hedge fund or GICs is relatively safe investment, however, the return can take over years to be considered as profitable. For example, RBC’s two years non-redeemable GICs offers a maximum 5% return. After tax deduction and fluctuation, you will probably receive 2% return by the end of two years investment, well, still better than saving.

5. Fast closing. The bank’s business is loan instad of holding the real estate forever. As long as someone can take the loan, the deal will be closed as quickly as possible. Again, you have a chance to get a great deal on the property.

6. Free resources. There are always some good FREE foreclosure listing over the Internet, local accountants, attorney or even at the banks. Check out them as frequently as you can to find the best deal before the competitors. Note that, the major disadvantage of free listing is the limited number of foreclosure homes. If the property is in good value, it will be probably gone during the next second when you still think.

7. Reliable paid foreclosure listing. A few hundred dollars for a paid listing can offer you more information on the foreclosure homes which saves you a big amount of time to do the research (though you still have to research). Meanwhile, you have less competitors compared with using free listing along.

8. Low capital and credit requirements. The banks and the homeowners are both happy with a buying at each end, even the buyer does not have a lot of upfront capital or great credit.

9. Saving comissions. Buyers of foreclosure homes do not require to deal with any real estate agents (though you can do that), which ofter saves thousands of dollars of commission fees.

10. Low starting point. If you are satisfied with the current life style, you should stay with what you have now. No investment is risk free. However, if you want to improve your life and fully manage own investment, foreclosure homes can be a decent choice with low starting point. You do not have to know the complexed world-wide marketing trend, finance analysis, coporation background check and mathematical calculations. What you need is to focus on the local real estate marketing, find a few listings (free ones and paid ones), do your research thoroughly and decide where to buy/sell and when to buy/sell.

No related posts.