Most of us dream of having our own home. Perhaps one of the reasons why we are working abroad is to earn enough money to be able to afford a house that we can call our own.
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Once you have saved up enough for the down payment, you could inquire with a home developer about their available units. You can even request a site visit to help you decide if it is a good location for you. Or if you are looking for a unit that is more affordable, you can look at the listings for foreclosed properties or acquired assets.
In this article, we will discuss why buying these properties is another alternative to finally getting that home you’ve always dreamed of.
What you should know about foreclosed properties
According to Investopedia.com, foreclosed properties are cheaper because the seller needs to recoup some funds before the property is taken away from them. Some sellers even offer a much lower interest rate or a more affordable down payment.
A property becomes foreclosed when the titular owner fails to pay the amortization for the loan or when the real estate tax is not paid. The lender will acquire the property again and sell it to others to recover the loss.
If you are interested in buying foreclosed properties, you can review the listings from Pag-ibig Fund. Make sure to visit their website often because they update their regulations for bidding on properties and office visits. Aside from Pag-ibig, you can also ask about the assets that SSS and GSIS are offering. Or you can also ask your bank about foreclosed properties they are selling.
But are you ready to go down this route? Let’s discuss the advantages and disadvantages of owning such property.
Advantage of buying foreclosed properties
We have mentioned earlier that the seller needs to dispose of the property as quickly as possible and is thus willing to offer it at a much lower price compared with the prevailing market price.
Faster awarding of the title
When you buy your property from the government or from the bank, you are assured that there are no pending cases. These entities have taken care of any liabilities before offering the property to buyers.
Has higher resale value
If you are in a buy and sell business, you can resell the property at a much higher price compared to when you purchased it.
Disadvantages of buying foreclosed properties
Buying a property on an “as is, where is basis”
If you are planning on buying foreclosed properties, you should remember that you won’t have a lot of choice in what you are buying. For one, you can’t choose the location of the property but instead will depend on where the available assets are located. Also, the property could be in dire need of repairs.
Since there may be other buyers interested in the property, they may be able to buy it before you do. You will then have to look elsewhere.
Property may have existing liabilities
Some of these properties have current occupants or have illegal settlers. It might take you awhile to get them to leave. Or you might have to request the barangay officials’ help or go to court to get the occupants to vacate the property.
We hope that you have more information regarding the property that you want to buy. Feel free to ask home developers or bank representatives before you make a final decision.
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