Money Pit? The Pitfalls and Benefits Of Buying A Home At Auction
Some folks get a little squeamish at buying a property in an auction, as they don't like the idea that they are benefiting from someone else's loss. This is because more residential properties are being auctioned off due foreclosure. When the Bank repossesses the property because the mortgage payments weren't kept up. However, despite this reservation buying a home in an auction is definitely something to consider, as it can save you a lot of money. Read on to find out more.
Pitfall - Guilt
OK, so let get the big emotional issue out the way first. That is guilt. You may think that feeling guilty when buying this sort of property makes you a good person. But really it doesn't. You don't know the people that lived there, the choices they made, or whether any of it was their fault or not, and in reality, you never will. So why torture yourself? What happened previously is none your business, and you had no control over it, so it's best to stay as detached as possible. Otherwise, you could be missing out on a wise financial decision for you family.
Benefit - Makes owning a home affordable
It’ is this wise financial decision, buying a home at auction, usually for below its market value that is the main benefit here. Property prices are high, something that is discussed in depth at http://www.ampcapital.com.au So can be difficult to even be considered for a mortgage these days, let alone having to pay one off every single month. That is why it's vital that you consider all the ways to get on the property ladder laid before you, including that of buying at auction.
Pitfall - Unexpected Work
However, buying a property in this way isn't always problem free. The issue is usually that the auction happens quickly, and you may have only got a brief look around the property before you buy. This can leave you with unexpected work to do on the house. In the worst case scenario, this may be expensive repairs to structural elements or roofs that eat into your profits. While even in best case seniors it's often necessary to clear and gut the property so it can be retrofitted to your standards.
This of, course is hard work, as the property could be full of old rubbish, furniture, and stuff that need to be sent to the dump. Although you can make it easier by using companies with reasonable rates like dirtcheaprubbishremoval.com.au, to take away the trash and recycling when you are done. As well as a good value laboring company to help you remove waste items like built in cabinets and wardrobes that you want to junk, ready to make the place your own.
Benefit - No chain
Lastly, another important benefit of buying a home at auction that can save you money is that there is no chain. Chains are problematic, as they can hold up your experience as well as the whole market as http://www.smh.com.au states. So, being without one is a good thing. As it results in no wasted fees, or potential rental payments to make when you have sold your home, but the one you are buying falls through.
So, in summary, while there are potential pitfalls like guilt and possible unexpected work costs, buying a home at auction it is definitely a worthwhile course to take. As it's a way of owning property at a vastly reduced price.