Looking for a Bargain? Distressed Property could be an Investment Dream

As the commercial property sector bottoms out, some bargain hunters are looking to reap the rewards and cash in on some distressed property listings for commercial real estate in Sydney and abroad. Some overseas markets in particular have seen some rock bottom rates for foreclosing properties.

A distressed property is a commercial property that has been issued a foreclosure order or has been advertised as on sale by the mortgagee. As a result, sellers are usually looking to unload the property quickly so they're priced to sell. You'll have a small window of opportunity to make an application, so timing is key.

According to research from the Royal Institution of Chartered Surveyors, the US and Japan have seen some good pickings in distressed property listings, while markets in India, Hong Kong and Australia have remained comparatively stronger throughout the downturn.

Tips to keep in mind when investing in distressed property:

- Act fast - most distressed properties will have a foreclosure date so you will need to close by this day, otherwise fines up $250 a day may apply.

- Get quotes - there's little opportunity to reopen negotiations once a deal has been done. Ensure if you're going to be doing any construction or repair work on the foreclosed property that you get multiple quotes early so you will know what additional costs may be involved with your purchase.

- Understand all the paperwork and terms - get professional legal advice for a foreclosure purchase. Distressed property listings usually involve additional contracts and addendums. Attention to detail is a must.

- Keep thorough records - with all financial transactions when it comes to commercial property for sale, you want to keep copious records, but this is especially true with distressed property listings. Enlisting the help of a specialised legal professional will also help ensure that all the proper paperwork is in place.