Fareham, Hampshire -- (SBWIRE) -- 10/11/2012 -- It's been a long recession and a lot can be forgotten over the course of many years of economic decline. Particularly in the housing market, people may have a hard time recalling how many investors were buying, upgrading, and flipping spec homes for profit just a handful of years back.
Independent entrepreneurs who had an eye for selecting out homes and commercial properties that needed what they called, “A dress-up”. This would surface issues without having to deal with major structural repairs that can drain the profit out on a project.
Declining home values, it turned out, did an even better job of taking the profit out of a project, and in fact it was what brought an end to the boom era of this type of speculation. All that is changing though, and changing fast as the property market has bottomed out and once again starts heading north.
Buying distressed properties however, can pose certain difficulties. That is that banks sometimes don't like to lend on them, preferring instead to finance deals that are in less need of repairs. So to find out more on this burgeoning trend, who better to contact then one of the leading online brokerage firms in the UK dealing with hard to place mortgages.
In a recent phone interview Alan Shaw, CEO of Findamortgageonline.co.uk took some time to lend us some professional input on the topic, and what he had to say was quite interesting.
He told us that. “It's been the better part of a decade now that a lot of the distressed properties on the market have been sitting empty. Then when you stop to consider that buildings and all that goes into them have service lives, some are in pretty bad shape. So the bottom line that lending institutions tend to look at with a low deposit mortgage, is whether they are livable or not. That is that everything must be up to code, even if a home or commercial building is unsightly in terms of the general appearance. We've been in business since long before the market decline set in, so we're very experienced in dealing with this type of borrower and we're starting to see more of them again.”
He also had some good advice for anyone considering getting into the fixer upper market on a speculative basis. For instance, he said that it helps if one has some previous experience in home building if they plan on doing any of the work themselves.
He also advised that anyone who is looking at any type of distressed property should bring in a professional inspector to go over it before they make the decision whether to buy or not. A professional building inspector can be good insurance that a buyer doesn't get stuck on any surprise major structural repairs. Find a Mortgage Online is a personal UK mortgage broker, with over 20 years experience offering service, and access to the ‘whole of market’ products.
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