Buying a Repossessed House Would you?

[lynchbhoy]

Houses are down a quarter from their peak, another quarter to go me thinks so will be plenty of decent houses in good locations at cheaper prices this time next year. With rents going down I don't see how the repayments will cover the loss in the short term

they may be down a quarter from their peak, but the reduction in prices is in 1- 5% bracket in our area now at least, dont think they would go much lower. I suppose I am only thinking of round my way -
so what I mean is you wont save a whole lot by waiting and you are not going to be guaranteed to get the house you were looking for if you preclude anything now from your search imo

rents may be down, but not that much - certainly you might only now get 1000 for a house that was renting at 1300, but if the mortgage is
1400 , its still only 100 a week savings - if you can cover that. Its a better bet than the fecking pension fiasco !

[heganboy]

Im not sure why you would see the difference in a repossessed house and any other house when you go to buy it? same goes for any pre-owned anything where the owner does not get to materially affect the good being serviced. you decide whether it is value for money or not...

[pintsofguinness]

I'll post this in here to save starting a new thread, but does any of you know what the situation with rental properties at the minute, am I right in thinking rents are going down?  Are places up for rent lying empty?  I'm specifically talking about the UK.

[DrinkingHarp]

Buying Repo houses is a good move depending on - Price, Condition and Location- just like any other home purchase.
If I had cash in hand I would wait till the 2nd or 3rd quarter to pick up property. The economic downturn will only get worse over the next year. Turning a property into a rental has BIG advantages and BIG disadvantages.

Advantages
Property produces revenue
Can claim depreciation on value of property
Someone else is paying your mortgage/taxes
Property value will increase as a long time investment
There are more but you get the point

Disadvantages
Tenants
Have to keep property up ...Repairs/appearance
Collecting rent
Damage to property

With the lending regulations tightening up more people will be forced to rent.
And in the future when the regulations loosen up you have a viable property to put out on a good market.