Buying a home of their own is the lifelong wish of every other individual. Due to rising real estate prices, most people think that they will never be able to realize their dream. They are always on the watch for cheap properties, so they can also buy their place. In such a scenario, distressed Properties seem like their savior; however, they can also prove a huge scam.
What are Distressed Properties?
Distressed properties are the ones that are owned by banks or are near foreclosure because their previous owners could not pay off mortgages or loans. Such properties are often sold off at less than market value, so the banks or other beneficiaries can recover their loss. However, these properties can be too damaged and impossible to live.
If you are curious and keen to learn why you should not buy distressed properties. Then, Keep reading this article, and you will get all your answers.
Top 7 Reasons to Not Invest in Distressed Property
If you think that buying a distressed property at a cheaper rate is your only savior in terms of owning a property, you might as well be better off without it. Investing in distressed property can come with a long list of challenges and expenses, on top of poor quality of life. You must be aware of the reasons for not investing in such properties before finalizing your choice.
Here are the major reasons you should quit the idea of investing in distressed properties.
1. Absurd Location
Buying distressed properties does not offer any control or choice in terms of location, which is the most important reason you should not buy one. The property can be in an absurd location, which might not be according to one’s standard requirement. The young generation prefers to explore apartments for sale in the Jumeirah village circle instead of investing in distressed properties in absurd locations.
2. High Competition
The distressed properties are often sold at cheaper prices due to foreclosure and mortgage issues which invite high investment interest and competition. This is one of the prime reasons not to invest in such properties. The high competition for buying distressed properties can often result in a higher sell-off rate, although the property will not be that valuable. So, you should avoid getting tangled in such schemes.
3. Poor Property Condition
Distressed properties are often in too bad of a shape and condition, which is another significant reason to not think about investing in them. You might be buying the property due to its minimal cost, even if it is in a remote area. However, the damaged and poor conditions are not worth your investment, as you might have to pour in more and get a lesser return on your investment.
4. Higher Chances of Vandalism
Distressed properties are often located in secluded areas or are not watched after being evacuated, due to which they become the target of vandalism. They might also be a hideout of criminals or homeless people, which raises serious questions about the safety and security of the property. This is enough of a reason to not invest in distressed properties and instead look for safe and secure localities and societies.
5. Lack of Basic Utilities
The distressed properties often lack basic utilities like the water supply and power connections. Moreover, you might have to take long walks before reaching public transport stops. The distressed properties can also have serious maintenance issues like broken or poor fixtures, mold, leak pipes, and plumbing issues, etc., which all shriek for a poor investment decision.
6. Tricky Legal Process
Buying distressed properties is not as simple as visiting a property, liking it, and signing the purchase paper. Instead, the state or local authorities might organize an auction on the property. The winner of the auction will have to take care of the legal proceedings, clear previous mortgage issues, & handle numerous other legal complications. All of these are clear signs that buying such a property is not worth your time and investment.
7. Not Move-In Ready
A significant majority of people buy properties to reside in them and not for the sole purpose of investment. If you are also on the list of former types of people. Then you should never buy distressed properties because they are not move-in ready. And you might have to wait for months before finally moving. You can instead explore apartments for sale in the Jumeirah village circle. Which are move-in ready and offer a comfortable and high-quality living experience.
Are you looking for alternative options?
The alternative options are the modern and affordable societies like Jumeirah village circle, which offer all the facilities of life with a higher return on investment. Instead of wasting time and resources on distressed properties, get in touch with professional real estate builders now to realize your dream of owning your home.
