We last saw this Green Point apartment in May 2008. It was on the market for R1 895 000 with a tenant paying R8 500/rent.Now the seller is asking for a buyer to just take over his bond and take it off his hands for R1 550 000.
We last saw this Green Point apartment in May 2008. It was on the market for R1 895 000 with a tenant paying R8 500/rent.
8 comments:
"This has given me the best capital appreciation from all properties and by settling with the bank, it is yours to move in directly" ... hmmm, something wrong with that statement.
LOL This guy sounds desperate with that statement! LOL
that statement is just stupid! hahaha
I was wondering about that statement. If you've had fantastic capital appreciation why does the new owner have to settle with the bank?
this statement could be quite true if he refinanced every time the property had some equity. The cash released is tax free! Usually some of the cash is kept aside to fund the shortfalls until rental escalation catches up, however rental demand in that area is not so high these days... so he needs a homeowner to buy this place, not an BTL investor.
Quite so Anon. So let's assume he bought way back for say 1 bar and during the heady salad days of speculator hedonism the good fellow refinanced and the bank was happy to oblige. Since his original asking price was 1.895 bars I think it's safe to assume he probably refinanced to somewhere around 1.6 bars and when you look at the apparent 'settlement' implied by an asking price of 1.55 bars.
Now, if this bloke had been prudent and invested the refinanced amount, then he wouldn't be so desperate to sell, would he? Either way he'd have a kitty to either reduce the bond or be able to make up the shortfall on a forced sale?
However, the current asking price implies 'settlement' which I suppose is a bit of a faux pax on his part. Methinks all that capital appreciation was tied up in the new beemer and flat panel TV.
I suppose the question is: Is the apartment worth 1.55 bars? If 'yes', then he's ok and if 'no' then he is probably going to be paying back a substantial portion of that capital appreciation on top of the monthly shortfall against the rental.
As to rentals going up? I don't think so, not for some time yet. But that's another debate.
Some trivia, fwiw:
Excerpt from commentary by Frank Barnera on financialsense.com...
"Tuesday was the S&P release of the latest figures for the Case-Shiller 20 city (US) home index, which fell 2.2% in the latest period, and a record 18.20% in the past 12 months.
According to Case-Shiller, home prices are now down 25% from the peak in mid-2006, with prices in Pheonix, Arizona down 33%, 32% in Las Vegas and 31% in San Francisco representing some of the areas hardest hit.
According to CBS Marketwatch and High Frequency Economics, housing wealth is now falling by $380 billion per month, or about $370 per adult per week"
And the saying goes: When America sneezes...
The apartment is worth about R1.2 million in a good market. I would rather wait for the repo auction where it will probably sell for R800 if not lower.
Post a Comment