Filed under: learning about the property market
In the book “Rich Dad, Poor Dad”, Robert Kiyosaki talks about a range of options for building wealth. One of the key investments he talks about is real estate foreclosures: the situation that arises when someone is forced to sell a house (for some reason), and the bank sells the property – usually at auction. This situation presents a great opportunity for the buyer: the sale price is likely to be below market value, and so as soon as the transaction has been completed, you have equity in the property.
Until now, it’s been hard to find these properties: the bank has an obligation to make sure the property is sold at a fair price, and so there is not much publicity around the listing of these sales as “foreclosure sales”.
At findmeahome.com.au, we’ve taken the database of properties that are listed for sale, and combined it with the Residex database of price estimates for properties. What happens when you combine those two? You get the Best Bargains Report.
When the database tells us that a property might be a bargain, we call the real estate agent and confirm. If it passes that test, it’s a candidate for inclusion in the Best Bargain Report.
The properties in the bargain report might be sold quickly, and so instead of selling a single issue we sell a 4-week subscription to the report.
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Funny you should mention foreclosures as I was discussing the same exact topic this week with a friend. It is amazing how differently things work here and in the States – they make foreclosed houses very easy to find and in Australia it’s almost impossible.
So where one goes to find foreclosed houses for sale (other than via Best Bargains report)?
Comment by Chris October 5, 2008 @ 11:24 pm