Roughly one in every 970 properties in the State of Indiana faces foreclosure. While those rates are an average of the foreclosures county by county, the actual number of properties in some counties is roughly 1 in 500. Contrary to what you may think, the high frequency foreclosures are not all clustered on the map, rather a spotty region of high foreclosure rates around the state of Indiana. The harsh truth is that no matter where you live, the process of saving your home from foreclosure is on the minds of thousands of home owners across the United States.
If you are looking to invest in property in the great state of Indiana, foreclosed properties may stand to give you a higher potential return on investment than do properties bought through traditional transactions. You’ve seen it happen all around the country. Eager investors, placing their bets on run down foreclosed properties hoping to capitalize on the final sale. Because the majority of buyers are opposed to immediate renovation, real estate investors buying up houses in the home improvement field can be especially profitable. Purchasing run down foreclosed properties, then putting in the capital and time into a renovation project often pays off in big dividends. The same buyers that turned up their nose at the pre-renovation property become potential buyers of a newly renovated, hence more valuable property. With the numerous foreclosed properties, the state of Indiana is a potential goldmine for those willing to get their hands dirty. When flipping houses, each property that’s re-sold for a profit can provide a large lump sum which in turn lends itself to future buying potential.
Another demographic to which the foreclosed properties of Indiana often appeal is those looking for their dream home, but working on a tight budget. Because many foreclosed homes are sold at basement bottom prices, foreclosed properties become a potential dream home for buyers willing to invest their own time and money. This can be a definite advantage of buying foreclosures. Rather than putting the entire budget into purchasing the home, it’s often split more evenly between purchasing the property and putting money back into the house, and giving the new homeowners the ability to add their personal touch to everything their home will become. As for us, we always buy houses fast, so that we can begin fixing up the property right away, to minimize holding costs, so that we can increase our renovation budget. We think that the quicker the rehab starts and finishes, the more profit that will be realized at the end of the project. Using this approach, upon completion of renovations, the equity of you should see an instant jump in your equity.
While the foreclosure rates in Indiana have dropped significantly over the past twelve months, would be investors should not be discouraged. Although number of foreclosed homes has decreased by over 25%, there are still opportunities aplenty. Interestingly, the foreclosure rate, at 0.10%, is just slightly higher than the national average of 0.09%. While Indiana has suffered from a bit of a foreclosure crisis in recent decades, hope is far from lost in the Hoosier State. Statistics from March, 2015, indicate that there have been tens of thousands of jobs created, and that the statewide unemployment rate is slowly declining.
Foreclosure rates in the state of Indiana can be linked to the same basic causes throughout the country. Unemployment rates in the state of Indiana affect foreclosure rates as they anywhere. With continued slow economic growth, and over-reaching high risk mortgages, the foreclosure rates in Indiana are in a fickle state.