The real estate
market is showing increasing signs of recovering and there are great investment
opportunities to be found. Home prices are still relatively stable and interest
rates are still very attractive.
However, whether buying for a primary
residence or for investment purposes, there are still some basic guidelines to
follow when considering buying foreclosure property in panama.
Below are my 3 Buying Foreclosure
Properties Tips
Work
with a broker.
It does not matter if you are buying a
foreclosure for investment or as a primary residence, it is really helpful to
have a broker help with the process.
Neighbourhood is one of the most important
factors when it comes to buying a home and a broker is worth their weight in
gold when it comes to knowing the local real estate market.
Do
the financial due diligence.
All we need to do is remember the real estate
market crash to see why it is important to do a thorough financial due
diligence when purchasing a home.
Be realistic about your budget and how much
home you can really afford. If the home is an investment purchase, can you make
the mortgage payment if you have to carry the mortgage for a few months?
That can happen with investment property so
be sure you factor in at least six months of mortgage payments, just in case.
Also factor in the cost of any repairs.
This is especially true with foreclosure purchases, which are often sold, 'as
is' which means they often need repairs.
Verify the condition of the property.
Restore and repair costs add up on a total value of a home.
It is always best to purchase foreclosed properties for sale in panama
that require minimal repairs, otherwise your profit margin shrinks.
Understand
that every neighbourhood is local to that neighbourhood.
What this means is that what is selling in one
area may not be selling just down the road, so you need to do your homework and
check comparable homes in the area to know whether or not what you are buying
is a good investment. Get a proper assessment on the home you are considering
purchasing.
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