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Is it better to buy a cheap repossessed home and spend some money to refurbish it or to buy a new one?

Asked on Dec 1 2012, Renting in Salford | Report content

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  • It all depends on price. A repossessed property will most likely be cheaper, you have to weigh up what needs spending on it. New property comes at a premium, often valued over what it would be worth on re-sale. A cheap repossessed property can be under value, but some require work. It can be well worth buying property under value as long as you don't need to spend too much to bring it upto standard.

    Answered on Dec 3 2012, Report content
  • Hi talaipwros, At the moment, thankfully, there are a range of options when it comes to this particular choice in the property market with both brand new homes and those which have been repossessed providing a good chance for investment. Repossessed homes can often be picked up rather cheaply, and can even have a price which is below their value, which means that even after renovating them, you can find it cost effective. This option can be good whether you are planning to live in the house yourself or rent it out, in which case money can be recouped a lot quicker. On the other hand, the government's NewBuy scheme which was launched in March will allow you to purchase a house with just a five per cent deposit. While these can be more expensive in the first place, the fact that you can get yourself a mortgage without the huge outlay you might have to pay elsewhere can make buying a new house very affordable. Thanks, Scott

    Answered on Dec 6 2012, Report content

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