What are the Unique Advantages and Useful Tips to Buy Foreclosed Homes for Sale

Posted by CLAIRISSA LAURETA on April 5th, 2018

The real estate scene in the Philippines has been thriving in the recent years. As investors build more condominiums and residential houses, Filipinos are given more opportunities to buy and live in properties they call their own. In fact, even foreclosed homes for sale in the Philippines—which used to be associated with negative connotations—are now seen in a different light. Savvy home buyers and investors are considering these properties because of their advantages.

1. Lower-than-market price – 

Foreclosed properties are usually sold by the banks or insurance firms at considerable discounts because they are considered as non-performing assets. These financial institutions don't make any profit by keeping them; in fact, they even lose money due to maintenance and taxes. By lowering the market price, they can attract buyers and sell these houses faster.

2. Low down payment – 

Foreclosed homes for sale in the Philippinesrequire only 5% to 10% down payment, which is much lower than the normal 20% to 30% down payment required for new condo units and townhouses.

3. High ROI – 

Interested in flipping the property? You need to invest money and sweat equity in repairs and renovations but these upgrades certainly pay off. You can price the house according to the current market value of the similar properties in the same location. If you have chosen a good foreclosed property, you may even be able to double the money you invested.

That said, not all foreclosed houses and lots are good investments. If the cost of repair is too much, then it's better to buy a brand-new house instead. Don't worry, finding good foreclosed homes for sale in the Philippines is still possible if you follow these tips: 

1. Search for foreclosed houses and condo units using trusted property portals, for starters. Here, you can find foreclosed homes sold by reliable lenders. 

2. Attend foreclosure auctions. Some banks and insurance companies don't post their foreclosed properties on their websites—they auction them off. Attending such events will allow you to meet agents, seek advice, and get answers right away. 

3. Prepare your financing ahead of time. Many investors are on the lookout for good foreclosed homes so the competition can get tough. The only way to get ahead of the game is to pay faster than anyone else. 

About the Author: 

This article is written by Kimberly Khia, working as an Executive Assistant at Housal Inc. Housal Inc., is an online platform for real estate, addressing the unfulfilled needs by harnessing technology and bringing all-related solutions under one roof. For buyers, tenants, sellers, brokers, agencies or developers, it encompasses all their answers from property matching, listings, management, analytics and even more. Housal Inc. is the evolution of the real estate business process - empowering the real estate industry for the future.