Here's a 3 bed house for sale in Fernwood for R12.5 million. If anyone thinks the bubble is over, back in 2006 (seriously that's like the fourth article we ever wrote for this blog) it was on the market for R6.5 million.Back in 2006 the going rent on this place was R16 000/month. I wonder if the rent it attains now will cover the R125 000/month bond payment?
Also... tweleve bar and only three bedrooms?
7 comments:
This is quite unreal....
Have a look at this article on the number of repossessed properties for sale:
http://www.property24.com/articles/1000s-of-repossessed-houses-up-for-sale/12513
Makes you think that either some areas of Cape Town won't be affected by the downward property cycle OR there are many people who will be crying in the next couple of years.
Wow, they have literally doubled their investment during a period of worldwide economic collapse. Who needs a complicated hedge fund when you can buy into the Fernwood Miracle? You couldn't make this BS up could you?
Hi Eric
The houses being auctioned in Cape Town by the sheriffs of the courts number around the 100 per week mark...
The highest offer can not be rejected by the banks or the occupent.
Regards,
LS
What would be interesting is how long this property sits on the market and if and when it gets sold, what will the price be. Thaats the magic question.
Rawson Properties said in a statement that the difference between asking and selling price is now sitting at over 20% and climbing. And I bet you the higher the asking price is, the higher the difference in the percentage.
Hi LS
"The highest offer can not be rejected by the banks or the occupent."
thats not strictly true, or wasnt when i was last at a sheriffs auction a couple of years ago. The Bank had to agree to the highest bid before the sale was confirmed. this was done by the banks representative calling his boss on the phone.
Hi bbflames
Not to start an argument but are you sure it was a sale in execution by the sheriff?
(Not that I was very specific about the auction I was referring too.)
Read this to see what I mean about a bank being unable to refuse:
http://www.standardbank.co.za/portal/site/standardbank/menuitem.042bffe99ebb1a3d63b1a0103367804c/?vgnextoid=56a846d435d9a110VgnVCM10000050ddb60aRCRD
Regards,
LS
LS I think they were.......
It was definitely a sheriffs auction and the process happened with all the properties auctioned off that day.
I thought that they all went for way too much. Particularly considering there were "tenants" who did not look like they would pass a background check.
by the way I didnt manage to get your link to work.
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