Unwanted Houses

Introduction

The property niche for Unwanted Houses centers on an almost entirely neglected area of real estate. It's not exactly secret but you hear very little about this type of property, so it goes unnoticed by most real estate investors which is partly why I love to invest in this niche. Little is written about it either. The houses could just as easily be called Ugly Houses because that's what many people think of them on a first encounter. Newbies change their mind once they understand the savings compared to traditonal real estate purchases and the tens of thousands of dollars in equity they'll have at the end of a project.

What is an Unwanted House?

An ‘unwanted house’ is a dwelling which has been identified to be demolished, or moved to another location. These houses are ‘unwanted’ because they stand in the way of progress such as a new highway through the area, or a new housing development.  If it escapes demolition, the block of land it is to be relocated to might be close by, or hundreds of kilometres away. Note, these houses usually aren’t wrecks needing to be demolished – they simply can’t remain at their present location due to development about to happen at the site. The types of properties available to purchase and move range from the almost new, to glorious period homes, to the neglected and rundown.

After an investor or first home buyer takes on an Unwanted House project, the time it takes to complete will often depend upon a person’s determination and energy, varying from six months to 12 months or more.

The Basic Steps Involved in a Project

1. Relocate/Move a house using experienced house moving firm

2. Renovate/Makeover as required

3. Rent out or live in the house

Additional steps that can be undertaken –

4. Refinance or Sell the house

5. Repeat process with another project

Word of Caution

Be aware of the costs involved with all stages of a project and in your dealings with house moving firms. Failing to fully cost a vital step, or engaging an unscrupulous mover can break you before you even get started. Find out how to avoid unnecessary mistakes by reading the e-book Removal Homes Goldmine which can be found here.

There are two main advantages to using Unwanted Houses over other property niches.

1. Cheap to Buy. Unwanted Houses will always be amongst the cheapest residential properties you can buy, meaning less cash and/or a smaller loan is required to start your investing. Often only $1000 or $2000 to purchase, they can even be obtained for free because a developer wants them gone. The larger costs involved are in the moving of the house to your block of land and then connecting it to utilities. Any rehabbing, if needed, varies with each project.

2. They are easy to find. The real bargains in residential property aren't obvious to most of us. They take time and, quite often, specialist knowledge to find. But with Unwanted Houses you don't have to spend endless days and weekends searching for them. Most are advertised in online market places, on social media platforms, in newspapers or by visiting a house mover who has a yard full of houses lined up ready to inspect.

The Time Factor

Time is obviously a big factor in the success or otherwise of property investments –

– the time needed to save for a deposit

– the time needed to locate suitable property

– the time needed to renovate the property to a satisfactory standard

– the time needed for equity in the property to increase

Imagine if you only needed to save a small deposit or even no deposit, if you could locate and renovate in half the time, and if your efforts resulted in ‘instant equity' in the property – what a combination! This is all possible when you invest in the Unwanted Houses niche.

To build a portfolio, time is money, and any method that shortens the time between each property purchase means more money in your pocket faster and a quicker path to financial freedom. The ‘instant equity’ which results from completing a project can be used to purchase a second property, a third property, and so on. If this can be achieved every six months instead of every twelve months, your goal is reached much more quickly.

Conclusion

There you have it – a system of investing in real estate which could change where and how you invest. Plan carefully and with due diligence and unwanted or ugly houses will put you on a path to success. My approach to Unwanted Houses is that it is recycling on a grand scale ie, there isn’t anything bigger than a house that the average person will ever get the chance to recycle – and it is very profitable.

If interested in finding out everything there is to know about this real estate strategy, check out my e-book called Removal Homes Goldmine which can be found at House Moving.