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If you wish to buy a property but do not have that much budget to do
that, then you should turn your sight on buying cheaper properties.
These properties may mean poorer conditions but with the proper
management, you will be able to turn it into a high-income generating
property.
There are
various reasons why properties go out for a lower price than that of the
market and these should make you wary about the chances of buying one.
First
there is the problem with finances which is one of the major reasons why
an owner will agree to settle for a lower rate. If he cannot keep up
with the maintenance costs and other operational expenses, he will be
forced to sell the property.
Second is
the death of the previous owner and the court is settling his
properties. The need to speedily dispense of his properties makes it one
of the reasons why it will be put up for sale at a cheaper price.
Third is
the dissolution of partnerships due to irreconcilable differences
between the owners. Another reason also is the poor condition of the
property which has been mentioned earlier due to perhaps the increase in
vacancies in the property and the poor type of management that it is
under. If the owner or manager has been secretly taking funds from
maintenance costs then the property will definitely be neglected.
There is
also the issue with foreclosed properties, which are auctioned at lower
prices and also the length of ownership that may be taking quite a toll
on the owner. He may find it better to sell the property and may be
thinking of retiring.
Sources:
http://kclau.com/investment/property-investing-guide/
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