Pros And Cons Of Buying Sinkhole Damaged Properties
- By Tin Lam
- Published 01/29/2012
- Real Estate
- Unrated
In areas where sinkholes are prevalent there is a rising number of potential property buyers interested in buying properties and buildings/homes that have sinkhole damage already on them. There are many positives and negatives that go along with this choice that can help make a smart decision about buying sinkhole damaged properties.
Pros
One of the major advantages to buying properties that have pre-existing sinkhole damage is that they are usually incredibly cheap to buy. Sinkhole damaged properties, in most areas, cannot legally be sold and financed through banks without the buyer knowing about the existing problems, significantly lowering the value on the property. Another advantage is usually that insurance on the property would be decreased, or even not able to insure until damage has been repaired.
Further advantages of buying properties with sinkhole damage already on them come in the form of what can be done with them once they are repaired. A repaired property can be sold for tenfold the amount it was bought for, and once they are repaired and insured they can be financed through a bank again, gaining extra profits.
Cons
Everything with adv
antages has disadvantages, of course, and previously sinkhole damaged properties are no different. The major disadvantage to buying sinkhole damaged properties is that often they are a gamble. It is almost impossible to tell how much repairs will cost beforehand without having the sinkhole and the property inspected by a geologist or a geological engineer, both of which can be costly for a property that you haven't decided to pay for yet.
Another disadvantage to purchasing these properties is that sometimes repairs can cost much more than what the profits would be worth. It is common for sinkhole damage to be much more extensive that it appears at first, and the costs can really increase substantially once it gets started. Also, buyers looking to buy property are often weary about purchasing property that has previously had a sinkhole, even if the damage has been repaired, for fear or a poor repair job, additional sinkholes or the risk of future ones.
Buying properties with pre-existing sinkhole damage can be difficult for those hoping to invest in a solid profitable venture, but it doesn't have to be a negative experience. Weighing the pros and cons carefully before making a decision involving thousands of dollars in an investment that may or may not be profitable for you.
Pros
One of the major advantages to buying properties that have pre-existing sinkhole damage is that they are usually incredibly cheap to buy. Sinkhole damaged properties, in most areas, cannot legally be sold and financed through banks without the buyer knowing about the existing problems, significantly lowering the value on the property. Another advantage is usually that insurance on the property would be decreased, or even not able to insure until damage has been repaired.
Further advantages of buying properties with sinkhole damage already on them come in the form of what can be done with them once they are repaired. A repaired property can be sold for tenfold the amount it was bought for, and once they are repaired and insured they can be financed through a bank again, gaining extra profits.
Cons
Everything with adv
Another disadvantage to purchasing these properties is that sometimes repairs can cost much more than what the profits would be worth. It is common for sinkhole damage to be much more extensive that it appears at first, and the costs can really increase substantially once it gets started. Also, buyers looking to buy property are often weary about purchasing property that has previously had a sinkhole, even if the damage has been repaired, for fear or a poor repair job, additional sinkholes or the risk of future ones.
Buying properties with pre-existing sinkhole damage can be difficult for those hoping to invest in a solid profitable venture, but it doesn't have to be a negative experience. Weighing the pros and cons carefully before making a decision involving thousands of dollars in an investment that may or may not be profitable for you.
Tin Lam
Uretek specializes in preventive maintenance and post-damage sinkhole in tampa and spring hill sinkhole repairs.
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