Why You Need to Invest in a Foreclosed Home

We have a lot to offer our customers, including:

• Access to many foreclosure listings
• Expert advocacy and negotiation assistance
• Decades of experience in the Calgary real estate market
• A comprehensive service that covers everything from handling moving offers to transferring your utilities

Looking to Invest in a Foreclosed Home in Calgary? We Can Help!

Are you wondering if now is the right time to invest in a foreclosed home? Do you want access to the latest foreclosure listings, or need help understanding the buying process? At Mel Star, our team takes care of all the details, so you can focus on what matters most: investing in your financial future.

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4 Benefits of a Foreclosure Investment in Calgary

Foreclosure investing has become more popular in recent years, but there are still many misconceptions about foreclosure investing that scare some people off. The truth is, investing in a foreclosed home is a unique and great opportunity.

Here are 4 benefits of investing in a foreclosed home:

1. You May Get a Discounted Price

The sellers of foreclosed homes (usually the mortgage lenders) are usually motivated to quickly sell the property and recoup the loan balance. As a result, they will lower the price to get multiple offers and facilitate a faster deal.

WIth some good research and help from a real estate agent, you can find cheap real estate in a good neighbourhood, which will have great appeal to prospective tenants. You could also make a huge profit by immediately selling off the investment property.

How does this work? Essentially, a lower property price increases the potential of generating a higher return on investment. Due to the discounted prices, foreclosure investing helps to open up investors to real estate deals that might otherwise be unavailable to them.

2. Equity Building

Another benefit of investing in a foreclosed home is the buildup of equity. If you buy a foreclosure below market value and the value of homes in that neighborhood increase due to development, you’ll accumulate more equity than your neighbours.

Of course, there are no guarantees that the value of homes will rise over the years, but with foreclosure investing, the odds are better.

Renovations and Upgrades Increase Home Value

Since foreclosures are bought “as is”, they also usually require renovations and repairs. After closing on a foreclosure, you have the opportunity to renovate and upgrade it the way you want. If you can cost-effectively renovate the home, you can significantly increase its value and even demand higher rents.

3. The Buying Process is Quick

Mortgage lenders are usually looking to sell foreclosed homes as quickly as possible so that they can retrieve as much of the unpaid debt as possible. That means if the price is right, foreclosure real estate deals tend to close quicker than the traditional way of buying an investment property.

It is very rare for the seller to back out at the last minute and you become the owner of the property once the paperwork is completed. This means you can start earning monthly rents much faster.

4. The Title on the Home is Clear

When you purchase a property from another person, the title of the property might have mortgages or back taxes from a previous owner. However, when you’re buying a foreclosed home, the title is typically clear.

As part of the legal process, all issues with the home title are removed before the sale, leaving you to only worry about renovating the property.

Call Today

At Mel Star, we have over 40 years of experience in the Canadian real estate industry, and we know first-hand the stress and uncertainty that can come with buying or selling a home. Our team of knowledgeable real estate agents hedge the risk associated with this process by providing an all-inclusive, one-stop-shop concierge service for your real estate needs.

To find out more, contact us at (403) 284-6333, fill in our contact form or visit in person at 206-2411 4 St NW, Calgary, AB T2M 2Z8.