Tips On How To Buy A Derelict Property For Investment

For many property investors, a derelict home or a rundown residence can be a good below market value investment. Although they are no longer the beauties they once were, these dilapidated homes could boost your investment profitability. Moreover renovating period homes and refurbishing old-fashioned houses have grown in demand over recent years. Renovation and fix-ups of old homes for resale have become widely recognised due to the do-it-yourself craze as well as the fact that these properties are often sold at bargain prices.

Investing in derelict homes for resale is no blank potential. On the contrary, giving these rundown properties a new lease on life has become one of the most lucrative avenues for property investors and many buyers are keen on purchasing this type of property. This so-called renovators delight however is not for just about anybody. You need to invest your time, effort and financial resources when you undertake a major renovation or, in some cases, a complete overhaul on a rundown home. There are obviously major costs involved that the property investor has to be ready for.


If you are up for the challenge that comes with purchasing a derelict property, then here are some tips of the trade to help you get started:

* How to find a derelict property.

When it comes to hunting down a derelict property, you need a little bit of luck on your side. The easiest way to come across this type of property is if you spot one in your neighbourhood or happen to drive by it. If you happen to do so, immediately go to your local Land Registry to find out who the owner is and write him a letter to establish if he is willing to sell. This is an important step because not all owners of rundown houses are interested in selling even though the property has been neglected for quite some time.

If you have had no such luck spotting a derelict property by chance, then your next stop would be at your local planning office. Many empty properties have pending planning applications which would indicate the name and contact detail of their owners.

* How to buy derelict property.

Auctions are a good place to locate a derelict property that is surely on sale and purchase it in a quick and relatively hassle-free transaction. With auctions, you are assured that the owner is willing to sell his property. Many auction houses include derelict properties in their portfolio. It is only a matter of careful preliminary research and some quick pencil crunching to determine your maximum bid.

Remember that you should buy that property only at a price well below its market value, given the fact that you have some renovation work to do. Dont get too carried away with the heady feeling that you often get at auctions. Your goal at an auction is not to win the property at whatever cost, but to walk away with a bargain. If the price has become too high for you, then simply walk away and choose another property instead.

By: Parmdeep Vadesha

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Parmdeep Vadesha is a property investment expert and founder of the largest community of property entrepreneurs on the web who buy below market value properties from distressed homeowners facing repossession, divorce and bankruptcy. He writes a monthly newsletter for over 70,000 property investors worldwide - www.Property-System.com