Following ABSA and it's Rapid Auction Programme(RAP), FNB is now partnering with Auction Alliance in the FNB Quick Sell Programme to get repossessed homes (or if they're following ABSAs lead, forcing sellers into auction before repossession) off their books.
Thanks to reader HG for the link.
13 comments:
I wish the agent I spoke to on Sunday in Milnerton Ridge could see this.
She's a likeable enough person and as agents go, she is definitely better informed than most I come across.
However, let's see what the rest of you think?
The location: Milnerton Ridge
The Property: 800sqm plot, 144sqm under roof (add 40sqm double garage for total 184sqm).
The Price: R1,295,000 which is R8,993 excl garage or R7,038 incl.
Now, I kid you not, go to ABSA's home replacement calculator and go look at what replacement costs are according to a bank, which means it is inflated. At R8,993 we're exceeding even ABSA's luxury estimates, which I assure you, this place is nowhere near.
Let's see. This is one of those faux pads where the owner took an ugly duckling and ponzi'd up the kitchen. They (stupidly) spent at least R150k on reasonably good quality veneer cupboards and black granite tops but then they went and put in ultra cheap down-lights in a roof that humps and saggs with the amounts of badly applied polyfilla to hide the age and condition? Why do people do this? And the bottom of the range 4-plate kelvinator hob? I won't bother to go there.
Long story short; structural breez-blocks so cheap outer walls. Entire inside roof needs replacing, no roofing insulation, veranda is cracked screed (looks terrible), entire structure needs approximately R250k of maintenance to get it shipshape for the next 10 years.
True building cost of this pad today? (allowing for the good quality aluminum frame windows) is at best, AT BEST, R4,800sqm, using the same materials I found evident in this spot.
This just proves to me that both agents and sellers are living in cuckoo land. I'll rather wait for that vacant land auction and build.
And here's the clincher that proves, to me at least, that we've barely entered the popping phase. According to the agent, we won't see distress sales in Milnerton and surrounds because most home owners there are not in financial distress or at least have paid off their bonds to manageable levels. I don't arhue that point; sure, many people have worked their bonds the smart way, we can't all be stupid. However, what this lady does not consider is the broader macro fundamentals that are patiently heading towards us like a tsunami.
Even at R800,000 I would still think twice about buying this place. I didn't bother to mention this.
Estate agents are funny. The other day I was talking to one and mentioned that now is a bad time to buy since in year the property can be half-price. She took a personal offense to this. She said this can't happen. I said I bet a couple of years everybody though what we have now can't happen. She then said that it can't happen because if prices go down 50% then the situation in South Africa will be very bad. So the way she thinks is that if something is just too bad, then it can't happen.
Estate agents are quite useless, I've been ignored by ERA, Remaxx, and a few other major ones when requesting to view properties around Cape Town.
Remaxx, after many tries, eventually got back to me on this property: http://www.g.co.za/Anon/property-details.jsp?gid=1429986
They tried to convince me not to see it, telling me the rooms are small, I won't like it, etc., after insisting, they said they'd set it up, and phone me back, they never did. Imagine having that when trying to sell your property?
I attended the the first FNB auction conducted by the Alliance Group in Cape town on the 18th of March.
I was the highest bidder on three properties but only one was accepted which is still great.
Bought a 3 bedroom/2 bathroom freestanding house with a huge pool in a middle class suburb.
Now its back on the market with a 40% and even at that price, its a giveaway. The profit...a whopping R200K.
So even if mamparas like the editor of this blog sas that there is no money to be made in property....trust, there is. There is never a better time to make money in property than now so dont listen to all the idiots who rent from their landlords. Get out there, attend these auctions and get a barain of a lifetime.
As for agents, most of them live in absolute denial as to the state of the market. The ones who have accepted that prices have dropped are the ones that are selling property.
One must understand that most estate agents have no tertiary education. The standard 8 education they recieved back in the 70's and 80's has about as much value as primary school now. So to expect anything more than a moronic response is simply asking too much.
Out of interest, how do these auctions work, do you need some sort of upfront deposit? Can you get a bond on the property if you win? etc...
Anon at the auction, care to give us details of the place you bought? Boasts only work when you get the payoff, and I guarantee you you're not going to sell your middle-class pile anytime soon, and if you're lucky you'll sell it at a small loss. Come on, mate, give us the details - address, price paid - and if you make a killing we'll give you a round of applause. But until then you're just another grubby little ramper with a big mouth and no track record to back any of it up.
@Bean counter-sounds like your matric and three month diploma in 'bookkeeping' does not make you a bean counter or are you refering to the jellybeans you stuff down your throat daily.
There is tons of money to be made in distressed sales and repossessions but only if you have cash. And having cash means you need to have some sort of brain which unfortunately (or fortunately) excludes wankers like you.
So go back to stuffing your fat trap and leave the money making to people with brains....and cash!
Anon, glad you got that off your chest. I hope you feel better. So now let me and my four degrees repeat my question: what's the address and how much did you pay? You know what I think? I think you're making it all up. And until you supply some details, so does everyone else on this blog.
So - anyone care to tell me how the auctions work?
Brett, how about starting at the website: www.alliancegroup.co.za
Everything you need to know is there.
Bean Counter, I know that a number of these properties on auction are selling for as little as 50% below ABSA's value at the peak. Surely if one puts a tenant in the returns start making sense? Why are you not stocking up your buy to let portfolio in these times?
It seems people like Bean counter and CJ cannot fathom that now is the time to buy property if there ever was one.
I have gone to these Auction Aliiance group auctions and have seen the low low prices being achieved. But you need to have the money ready and need not rely on finance.
Hi Guys care to help me I need advice!!!! please...
tell me if you bid on a house and you the higest bidder and now you pay the auctioneers commission.
then you need to get the bond approved...but the extra cost involved vat etc is more than you allowed for, can you get out of the whole deal with the auction people what is the worst case senario?? just a bit worried....please help
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