The Dangers Of Cheap Property
Cheap property can be a horrible vice. Cheap property is a great temptation for people who have much to invest but wish to have something a bit more stable to invest in than the stock market. However, there is much danger in buying cheap property.
A serious danger in a cheap property is a horrible foundation. Many houses that are old have very broken, crumbling, and sagging foundations. That means that it will cost tens of thousands of dollars to fix the foundation. All of a sudden that cheap house becomses quite a bit more expensive. Oops.
Another great danger of cheap property is that they can be money pits in no time fast. Have you ever seen the movie the money pit? It’s quite entertaining, but that once cheap mansion became quite expensive before it was all said and done.
More than that a cheap house can make a lot of strain on a relationship. If your significant other is unhappy with the property, it does’t matter the cost.
Another danger is in property taxes. Sometimes a house is cheap to buy, but it is assessed at a much higher value. Thus, you’ll pay taxes on the assessed value instead of what you paid. You may have paid $50,000 for the house, but you might be paying property tax on $100,000. Fun right?
The biggest danger of cheap property is buyer’s remorse. Just because it’s cheap doesn’t mean it’s a good deal. As I’ve outlined above, there are a lot of dangers in buying a piece of cheap property. If problems arise, it can sour you on the whole experience.
Problems often can make you feel bad about the experience of buying cheap property. It is unfortounate because buying a home for less than it’s worth is a path to true wealth. However, just understand that there are potential pitfalls. If you can avoid them, you’ll be fine.