Purchasing a property on auction

Just make sure what happens to your deposit if the bank declines you. Get pre approval if you can. The biggest concern with auctioned properties seem to be outstanding municipal accounts and evicting sqauters.


Tge T&cs should be standard call the auction house and ask for a copy.
 
Hmm I should follow this. Nice way to get a house on the cheap, provided outstanding accounts are sky high.
OP, is there a site you are browsing? Would like to have look at whats out there.
 
There is the voetstoots clause, so potential for massive expenses after purchase with no recourse through agents.

I asked the bank when I was looking into it. They said I'd be lucky to get 70% finance from the bank because of the inherent risk.

The auctioneers also take quite a cut. IIRC, this is all calculated after your bid, so you need to factor these additional costs into your highest bid.

I did the maths, and decided that it wasn't worth it for me considering that these CPT properties were selling at a premium anyway. If you get a solid place for a good price, you might score a few hundred thousand. If you get a lemon, you're fooked.
 
You must log in or register to reply here.
Back
Top
Sign up to the MyBroadband newsletter
X