Purchasing A Repossessed Property As An Investment
I want to talk about purchasing a repossessed property as an investment. Several people have called me and asked can you buy a property and turn around and sell it the next day at a profit. The answer is no. Its because these properties are sold for what they are worth. You will need to do work on them and wait for the passage of time for the equity to build on the property. They make good investments for people who want to buy properties that need work and are willing to do that work. Fix and flip. That method works well for the amount of work a repossessed property requires.
Some people fix them up and rent them out as long term investments. Ottawa has a very stable real estate market. You don’t see the extreme peaks and valleys that you may see in a place like Vancouver or Toronto. On average we see price gains of about 5% per year in our marketplace and its been that way since the 1950's. So its a good for a long term investment.