Anyone who decides to buy a bank repossessed home as an investment knows what they are doing. Repossessions will occur when the owner of a property is not paying their mortgage; the bank will then claim the property and sell it publicly, privately or at auctions. Houses that are sold under these conditions are normally sold at excellent prices, so if you are looking to invest, this is your chance to grab the opportunity with both hands. Buying a home is one of the smartest investments one can make; if you don’t want to live in it yourself you can rent it out; that way you will make extra money every month and before you know it you will have paid off the amount you paid in full for the house by the rent you get in every month.
Make sure the house is the type that you want when you are looking to buy a bank repossessed home as an investment. However, if the house is not entirely what you had in mind, you could always fix it up a little and make some small alterations if that is what you think you need to do. The condition of the houses will depend on how the bank chooses to sell them; you might get the houses looking a little out of shape for a cheaper price, or the bank will have them fixed up before they put them on the market and sell them for a little more. Repossessions take place all the time, so it is up to you to keep up with them when you are looking to invest your money in something worthwhile. Auctions are always the best place to start; ask your nearest bank for more details on their auctions.
Remember that you have many options and shouldn’t give up easily, to buy a bank repossessed home as an investment takes time.
House Sales in South Africa
House sales in South Africa are increasing every year, because people cannot afford the payments anymore. Nowadays, many people will agree that renting a house instead of scouring the market to buy one is much cheaper, although in many upper class areas letting is more expensive, it is still much cheaper than buying. This is also another reason why many people are looking into house repo auctions. This is also a great way to get your hands on a house. It is a cheaper alternative, but not always the solution. There are many houses going for sale around the country, but for many people all they can do is fantasize.
With the increase in house sales in South Africa, today having an ordinary job will not get you your dream home. You will be forced to rent a house and most of the time you will find yourself living in an area where houses to let are cheap and there are no other option. With the increase in house sales around the country, you can visit your bank and see if they will be able to finance you, if you do decide to attend an auction. It is much easier to get a loan today compared to years ago. If you are willing to take this route, it could work, and for many people this could be the only solution to buying a house.
Have a look at what is available on the internet and see what houses are up for sale. Once you have a list of houses, contact your bank or visit any one of the ABSA, Standard Bank, FNB or Nedbank branches and see if you can get a bond. Depending on your salary, an amount will be worked out for you. If you are happy with it, go house hunting. House sales in South Africa are increasing and making it hard for the average person to own one.