Parklands
Parklands - 3 bedroom/2.5 bathroom townhouse(only 12 months old) - sheriff auction price R583000 - Sold in 2007 for R879 000 by developer
Parklands - 3 bedroom / 2.5 bathroom townhouse - sheriff auction price: R379 000 - exact same sized property in same complex selling through Remax for R749 000
Parklands - 3 bedroom/ 2 bathroom townhouse - sheriff auction price : R480 000 - Open market value: about R650 000 (currently being rented out for R4600)
Parklands - 3 bedrooms/2 bathroom townhouse Sheriff auction price: R515 000 - Open market value: about R699 000 (currently being rented out for R4800 hence its high price)
Parklands - 3 bedroom / 2 bathroom freestanding house (no garage): R490 000 - Open market value: about R650-699 000 (currently being rented out for R5000 per month)
Parklands - Plot - sheriff auction price: R350 000 - outstanding bond: R590 000 odd
Table View
Heron Cove complex - 2 bedroom / 1 bathroom - sheriff auction price: R252000 - Open market value: about R399 - 429 000
Heron Cove complex - 3 bedroom / 1 bathroom - sheriff auction price: R355000 - open market value: about R449 - R499 000 - Oustanding bond value -R550 000 (achieving a monthly rental of R3500 per month)
Bloubergstrand
2 bedroom/ 1 bathroom apartment - sheriff auction price: R424 000 - open market value: R650 000
2 bedoom/ 2 .5 bathroom 127 square meter luxury apartment on Blouberg beachfront - Outstanding bond: R1.9 million (registered in 2005)- sold by sheriff for R1.450 million
Parow / Loevenstein
2 bedroom/ 1 bathroom duplex apartment with great view - Highest bid: R381 000 - Nedbank wanted much more as bond was over R550 000 so no sale.
3 bedoom/ 2 bathroom/double garage/pool - recently renovated house in pristine condition with seperate 1 bedroom granny flat on 900 sq/m plot - Sheriif auction price R866 000 - Outstanding bond: R1.5 million - open market value- R1.3 million
Goodwood
2 bedroom / 1 bathroom apartment (1 years old) - sheriif auction price: R330 000 - open market value: R499-550 000
Sybrand Park
4 bedroom/3 bathroom 250 sq meter house on 850 square meter plot with pool, garage for 4 cars, offstreet parking for 6 cars / had a granny flat that was easily 80 square meters in size- sheriff auction price: R790 000 - outstanding bond value: R1.6 million (registered in 2004) - Open market price: R1.5 million odd
Cape town CBD
Batchelor apartment (40 square meters) - sheriff auction price: R371 000 - similar sized apartments in building selling for R599 - R620 000 - Bond with FNB registered in 2005 was R600 000.
Zonnebloem
3 bedroom/2 bathroom corner unit duplex in Cantebury Square with garage and big garden - sheriff auction top bid: R895000 - no sale as Standard Bank wanted more - Bond value: R1.9 million - exactly same sized property selling for R1.499 million.
South Peninsula
Coniston Park / Retreat- 3 bedroom/ 2 .5 bathroom freestanding brick face home with double garage - Sheriff auction price: R315 000 - Open market value: R550-599 000 - achieving a monthly rental of R4500
Costa Da Gama (opposite Marina Da Gama) - 3 bedroom/2 bathroom freestanding home with garage (about 2 years old) - Sheriff auction price: R270 000 Open market value: R499 000 - R529 000
St James - 2 bedroom/2 bathroom 80 odd square meter sea facing apartment in the St James Terraces - Sheriff auction price: R 1 million - unit directly underneath selling for R1.499 million but has a small garden
Maitland - the exception!
3 bedroom/2 bathroom freestanding trashed house with a garage that was occupied by 30 or so Congolese or Nigerians - somehow this property was sold for R450 000 when the oustanding bond was R280 000. There were two shady characters bidding hell for leather so they probably knew something everybody else didnt.
What I mean by open market value is the current value at this point in time and taking the current depressed market conditions into account.
Its quite apparent that the market has tanked judging by the prices being achieved at the sheriff's auction. It must be said that there are numerous bidders at these auctions and the bank's representative does get involved if the bids are too low.
Another interesting observation is that the banks, with the exception of Nedbank, are willing to accept the fact that the final bid is only 50-60% of the oustanding bond value. It seems the banks know that prices are going down and they are selling cheap to cut their losses. That and banks dont want to be landlords of distressed properties.
28 October 2008
More Plunging Prices From Repo Auctions
Reader TA has been at another bank repo auction and sends in the following:
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11 comments:
Some of these properties are beginning to look like a deal.
The rental yields on some of the cheaper ones are looking good, although you'll probably have to factor in a 20% drop in rental prices.
I still can't figure out why someone would rent a 400K hole for 3-4K per month when you can basically rent a mansion for 6K, so I think these cheaper ones are going to have to start dropping rents.
Rents might be low in a lot of places but have you seen the rents in Hout Bay. Ridiculous prices and the houses stand empty.
Another 30% down and we can start looking at property again methinks...
Agreed. I think the time to start buying is getting very near.
But I'm talking about buying to live in, not for investing.
We are very very unlikely to see another boom like the last 7 years in our lifetimes. Hopefully people learned their lesson.
If your bond is paid up you can go to these sheriffs auctions and get properties that give you 12-14 % gross return meaning that you have to only cover 2-3% difference if your bond is being charged prime.
So you can buy some repo auctions, collect the rent, pay in alittle and expand your property portfolio and then sell them in a few years for a handsome profit.
expecting a handsome profit in a few year is VERY optimistic - the price will probably go down for a few years then slowly rise again.
CJ
I bought 5 bank repossessions in October and flipped 3 alreay.
All 3 were sold about 20% less than the what the repossessee paid for the property and I made about 20% markup.
The market is very much active BUT only when property is sold at a discount of note.
I personally believe that prices will drop further but not more than another 10-20%.
how does a first time buyer buy property of an auction?
Hi there
Can anyone let me know how to find out when there is a going to be a property auctioned. I constantly check the Bank sites for properties-in-possession as well as the Aucor and Auction Alliance websites. From what's available on these sites, there are very few properties being auctioned. Surely this can't be true?
These figures are 100% correct.I attended every single auction and these figures can be obtained from the various sheriffs of the different regions.
I bought 7 of these properties myself and have already 4 of them at about 20-305 less than there original bond value.
Scary but true.
I'm living in the UK but looking to return home soon - can anyone tell me where to find auction lists online so I can start monitoring. I might even send a family member to bid if the deal looks good.
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