The Aftermath from an economic crisis not only affects the overall economy of the country, but also damages the real estate market at the same time. Large numbers of houses, residences and buildings become abandoned or belong to financial institutions. These properties are called Non-Performing Assets, or NPA, and will be auctioned off.

This is a golden opportunity for investors to buy properties at a price lower than the market value by as much as 40-50%. The advantage of NPA is not only a low price, it also is sold quickly because it takes less time to renovate rather than build new properties. When it is successfully renovated, it can be sold immediately for a profit of more than 20% of the capital average.

Although NPA can be enticing, there are still some disadvantages. The condition of this kind of property is typically old, ruined, with tenants, or in mortgage. To make your NPA investment effective, you should check the following points:

What do you want from NPA? : Real estate purchases have two main benefits, as a place to live and as an investment. To plan properly for a purchase, NPA should be sought from an auction, because you can trust that you will receive proper assistance from courts, the Law Execution Department and from financial institutions.

See it with your own eyes : Many people may have heard the saying, “Don’t buy the house if you never seen it with your own eyes.” That is the most accurate saying, because buying a house that you’ve never seen the real is no different from buying a castle in the air, that it to say that it is always more beautiful than the truth. But the important fact to keep in mind is that the civil and commercial code states that the “Seller is not liable for defects in the property purchased from the auction”, which means that the burden of repairs and renovations fall upon the buyer. Examining to estimate the repair cost plus the buying price is necessary to consider the worthiness before making the decision to purchase.

The golden location: We are always reminded that when making a real estate purchase, location is the first thing to look at carefully, and NPA is no exception. If it isn’t at a marketable location, it cannot make as much profit as they should, even though you have purchased it at a very low price.

EFor legal accuracy, you should examine all evidence carefully from the building construction license of developer or owner to the other evidence, which is separated into

  • House :Consider about mortgage history or loan guarantees from financial institutions before transfer of ownership that will have a full staff to help facilitate the process.
  • Condominium : To invest in NPA, you should buy in the economic depression period and sell it during an economic upturn to make the highest profit. You should be very careful because of the factors of condition and structure. If you are careful and see the chance, the wreckage that many people ignore will be the treasure that is able to make a huge profit.

To invest in NPA, you should buy in the economic depression period and sell it in economic upturn to make the highest profit. You should be very careful because of the factor of condition and structure. If you are careful and see the chance, the wreckage that many people ignore will be the treasure that able to make the huge profit.