Since the 20th bank repossessed properties have been dumped en masse onto Gumtree. Not sure if it's ABSA, who are also trying to get rid of property via Auction Alliance, or one of the other big 4.
Well I guess the banks could always just hold a raffle...
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I have a feeling things have been deteriorating with increasing speed in the past couple of weeks. All of a sudden I see auction signs popping up next to houses everywhere. Also, the rand dropped give or take 20% in the past week alone. Stubborn sellers, especially those immigrating, must feel the irony of it: they refused to lower prices by 10-20% percent in order to achieve the sale so now life lowered it by as much as 30% for them except that nobody still wants to buy.
Soon might be a good time to pick up a property at a bargain price but I am also starting to wonder whether the country's future is sound enough to buy things even at these prices. What do you folks think?
250 properties ranging from 14m to 125g - smell the fear people.
Nice point about those emigrating. I know someone who sold his house months ago for 20% down from peak. He is moving to the UK and is waiting for the money to come through - whilst he has waited the rate has gone from 13.5 to 18.5 - he's lost 370,000 for every million that he wants to transfer. OUCH.
Meanwhile, a foreigner who had bought in Cape Town last year and sells now, will find that his "investment" has lost 50% in UK pound terms.
I share your feeling about the country's future. The only glimmer of hope is that down in Cape Town we have Helen Zille. If she goes I'm gone - if a member of my family is serious hurt by crime, I'm gone. For the moment renting seems the right thing to do. I like the freedom and I like that it is cheaper.
This crash has quite some way to go yet in my opinion - crashes don't end after a year. 3 or 4 yrs minimum
As a recent buyer of four repossessed properties, I decided to take a tour last sunday of the properties that were going under the hammer at the ABSA rapid auction held by Auction Alliance.
After the third property I visited, it came quite apparent that I ws wasting my time.
At the one property, the lady who was sitting the showhouse happened to work for the ABSA homeloans division, and said that these properties going on the auction were not repo's but sellers who were either a few months behind on their payments or ones that chose to sell their properties through this method in order to get a quick sale.
That was laughable as most of the properties had huge bonds that were sitting in excess of their value at this current time.
I visited a average Parklands home with three bedrooms, 2 bedrooms and a double garage. Its outstanding bond was R850K. The seller wanted R950K through agent and chose to have his house auctioned in order to maybe hook buyer.
Now if a biider offered say R750K at the auction, ABSA would ask the seller if they were prepared to take this amount. obviously they wouldnt as their bond is sitting on R850K.
And even if you offered the seller bond value, there still was a 10% commission plus VAT payable to the auctioneer so there were no bargains to be had.
At the end of the day, this ABSA auction was a farce that hid under the pretense that there was bargains to be had. It would be interesting to see how many properties actually got sold.
Alternatively, a person can wait until the sheriff steps in and repo's it and sell's it at a discount.
Has anyone noticed the long bond yields apiking again? More interest rate hikes on the way.
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