Investing in property can be a risky venture but also a profitable one. Provided you make the right calls when investing and selling, you could rake in quite the fortune this way. What are the right calls, though?
One option you may consider when shifting property is to go with a house buying company. An increasing number of homeowners are going in this direction when selling because such companies provide a quick sale with instant money. However, does that mean they’re a good idea for investors?
To better understand whether you should sell to these cash house buyers, it’s worth looking at some of the pros and cons.
You Get Quick Cash
Easily one of the best benefits of selling to a house buying company is that you can make quick cash. They typically have everything sorted within 1-2 weeks, meaning that if your finances aren’t doing too hot, they can really make a difference. This is provided that they’re legitimate, of course, and don’t employ scam tactics.
This can be useful if one of your investments proves to cost more money than it’s worth. If you’re covering payments like utilities, mortgage, council tax, etc., because you’ve got no one living in the property, you could be haemorrhaging money. The longer you hold onto that house, the more it’s going to cost you without making a return on investment. You either need to get an occupant living there (which could take months) or consider selling the property to someone else. In that instance, a house buying company is obviously best because of how quickly they conduct business.
You Sell At A Discount
When you invest in a property, you do so because you believe it can make you money. The cost of purchasing the home should eventually be covered and then some, leaving you better off than you were before.
Unfortunately, when you sell to a house buying company, the likelihood of this happening can go down. After all, no quick sale company actually buys a property for what it’s worth. That’s the compromise that comes with getting rid of the home for quick cash.
Of course, if an investment is proving to be a drain on your bank account, then selling this way can save you money in the long run. After all, even if the company buys it from you at a loss, you’re no longer wasting money on a property that’s hurting your finances.
You Can Get Rid Of Bad Investments
Not every investment is a good one. Unfortunately, you don’t always realise that until it’s too late, which obviously puts you at a disadvantage.
If you get hold of a property that seemed like a better investment than it actually was, selling to a quick sale company could be an excellent way to recover. That’s especially the case if you go with HouseBuyers4u, who don’t discriminate when it comes to what they’ll take off your hands. They don’t care what condition the building’s in; they’ll still pay you for it, which is why they’re one of the most trusted companies that buy houses in the UK. That’s a good thing to keep in mind if an investment is looking worse for wear and you don’t want it hurting your portfolio.
You Help Potential Competitors
At their core, property investors and house buying companies serve very similar purposes – both buy houses intending to make money from them. The latter may be more inclined to sell these properties on, whereas investors sometimes demolish or convert them. However, the desire to make a profit is still the same.
It’s for that reason that a property investor might have cause to question whether selling to a house buying company is right for them. If it feels too much like you’re benefitting a competitor, you may feel more comfortable exploring other options.
You Avoid Property Selling Chains
How often have you tried to shift a property, only to be stuck in a house selling chain that takes too long to resolve? It can be frustrating when your buyer is unable to commit to you, but they’re in the exact same position as you are, as is the person that they’re trying to sell to, and so on.
Depending on how far the chain extends, it can be months before all the sales go through, by which point this investment may have proved more trouble than it’s worth. Plus, there’s always the risk of the chain collapsing, which obviously puts you back to square one.
To avoid this devastation, you might be better off selling to a house buying company from the get-go. There’s no chain to deal with there, which means you can avoid the hassle of waiting longer than necessary to sell.
There’s no clear yes or no answer to whether or not a property investor should sell via a house buying company. It all depends on individual situations, though it’s clear there are definite benefits to going down this route.
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April 24, 2021 at 02:21AM
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