US real estate investors are taking advantage of double-bargains – repossessed homes which were once used as drug farms. The Mercury News reports big discounts are up for grabs on bank-owned Californian houses which were once used for illegal activity.

However buyers should beware, the paper warns, as structural improvements are often needed. One example provided by the Mercury involves a two-storey, five-bedroomed home in Elk Grove up for sale at $437,000 (£219,624) with repairs.

According to the paper, this property is one of “dozens” in the area once converted and used to grow marijuana before being raided by police. The Mercury News reports:

“But while the homes may be cheap, law enforcement and environmental health officials say buyers should consider potential structural problems and health dangers such as mould and chemical contamination.”

Earlier this month buy to let investors were warned to keep their eyes peeled after police in Wales uncovered Cannabis farms in rented homes. More than 100 plants were found in one terraced house at Brynsifi Terrace, Mount Pleasant after police received tip-offs from locals.

In July last year police also uncovered two cannabis factories in Gabalfa, Cardiff, including a three-bedroomed home stuffed from floor to ceiling with plants.

The first section of a UAE residential tower project has sold out, registering record sales figures in the process. First Dubai Real Estate Development Company announced the results following the launch of its first residential units at Morina Residential Tower.

Under construction near the Gate of Shams, Abu Dhabi, on Al Reem Island, 25 per cent of the project has already been sold. A total of AED 136 million was paid for the first quarter, with the total value of the project at AED 400 million.

The company said it had decided to resume sales while construction continues, in order to study price trends in Abu Dhabi. Vice president of sales and marketing, Abdul Rahman Al Kandari, said:

“The project is progressing on schedule. Excavation, piling and construction works have already commenced.

“We are proud to announce this distinguished residential project, one of the most important projects in our Abu Dhabi portfolio.”

The speed of sales will be a welcome tonic to recent concerns the area’s property market could be slowing. The tower offers houses of one to three bedrooms, plus duplexes and 24-hour security. Every property comes equipped with home appliances and everyone living in a unit is guaranteed at least one balcony.

Some buy to letlandlords are looking to increase their property investment portfolios as their section of the market shows ’strong resolve’. Research from the Association of Residential Lettings Agents (ARLA) shows just 1.3 per cent of landlords are expecting to sell due to current market conditions.

A further 7.3 per cent may alter their portfolios and four in ten are considering expanding them over the next 12 months. The statistics come from a quarterly survey of landlords and the ARLA Review and Index, published on Monday. ARLA head of operations Ian Potter said:

“Buy to Let landlords are confirmed as prudent investors for the long term. These investors understand the realities of the investment market they have chosen.”

Further figures from the ARLA review show a rate of return on investment from the cash purchase of investment property of 10.82 per cent, averaged across all areas. For geared purchases the rate of return is 20.86 per cent. The figures assume an investment over five years and include capital appreciation and rental yield.

Mr potter added: “This understanding by buy to let investors would appear to be far greater than the understanding shown by investors in many other markets and is proving to be a bonus for the nation’s housing problems. There is no one else investing in residential housing at the moment.”