Why I Avoid Property Auctions in South Africa
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- čas přidán 5. 07. 2024
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Why I Avoid Property Auctions in South Africa
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So you mentioned a couple of reports... is there or can you do a video explaining these reports... and costs involved and any free resources available
I did get a bargain bank auction property recently in a high demand area in Cape Town. The property is currently worth R800k+ and the hammer price was R350k. I only paid for the transfer costs + the R350k.
The previous owner was struggling financially and rented the property out to a couple who later also struggled to keep up, and that's how it became available via auction. I immediately looked for a cheaper place the occupants could rent and offered to pay their 3 months rent upfront if they vacate. Luckily they took the offer 😁
All outstanding levies and rates were covered by the bank. And immediately did a few touch ups on the property and put it up for rent. It's currently renting at R7800 pm.
So trick is, do your research properly and always think of the (smart) plan to evict the occupants ✌🏾😁
Well done, that's a guge disscount. Thanks for taking the time to share in the comments. Appreciate your input. I think if you know how to identify a bargain, you will be more able to buy one. Great stuff 👏🏻
Do you get these auctions from the bank's website?
When making an offer to a bank on a property in their possession, you must state that your offer includes, "ALL OUTSTANDING DEBTS on the above mentioned property, or the bank can transfer ALL the debts on the property to you. That's what my attorney told me. Always best to wait until the bank buys it in on auction, or you wil end up paying the autioneers commission together with having all the outstanding debts being transfered over to you, unless you include it ALL in your bid. If nobody buys it, then naturally the bank buys it in and it becomes a PIP (Property in Possession)
Thank you very much for your valuable comment. This is a great tip and definitely an important one to be aware of. Thanks for taking the time to share it with us. 💪🏻💪🏻
I bought a few properties via sheriff but I mostly look for Deceased and insolvent properties. Some I'll flip I even got a 18 unit for a bargain
Interesting. Thank you for taking the time to share your experience. What area did you buy the 18 unit in ? Well done 👏🏻 ✔️
Good luck John
It was around westonaria
nice@@johnvilakazi867
I recently wanted to buy a property for my family, which was literally a dream house taken back by the bank. I was happy knowing I’d be able to get a R5 million house for about R3 million. Nope the place sold for R5.4 million, put me off auctions completely
It's very seldom that ine can get a property at such a karge disscount on auction. You will be better off finding a distressed seller through an agent.
Love ur content ... so happy someone out there wit so much knowledge to share for free
Thank you very much. Glad it can can help. 🙏🏻🙏🏻
Great advice. Thank you.
Thank you for watching 🙏🏻🙏🏻
Funny you posted this, our house is actual going the auction route at the moment. We have chosen to try out this method to see how this varies from a straight sale.
Interesting. I would love to hear how it goes. Feel free to let us know. Goodluck 🏠
@@louisreynhardt will let you know how it goes. AUS primarily only use the auction route. Each house viewer has 15 minutes each to view and decide. More and more estate agents here in SA are pushing this auction sales concept.
@jeandesisnards5097 Quite interesting, it can be a great way to get a fair price for both the seller and the buyer. As long as there is reserve prices the seller wont lose.
Thank you so much for that information
Its a huge pleasure 🙏🏻 🙌🏻
I'm an Industrial Property Broker in South Durban, around the Port. I've had great success selling Industrial Property for clients using the willing seller auctions. But only certain properties do well and surpass the Reserve. Properties that have a number of unique selling points and therefore appeal to wide range of end-users, e.g., has 400 Amps, and a Gantry Crane, good height, a wash-bay, etc. Properties that will be vacant on transfer. And where the investors will also bid. The investors push up the end-users, before pulling out, then the end-users are left to out bid each other. Every Property I've brought to Auction for a seller with this success recipe has outdone the Reserve Price.
Thank you so much for the insights. This is really good information and also adds to my argument of rarely finding bargain deals on Auctions . I like to think of it as selling at a fair price so that the buyer and seller both wins. Thanks for watching and for supporting the channel, also thank you for adding value to the comments.
@louisreynhardt depends really, like the FBI Negotiator says, there's no such thing as win-win, it's win-wimp. If you're the seller, you want the best price for your asset. If you're the buyer, you want the best deal, the most bang for your buck. So it's all about perspective.
Thanks for your awesome channel,sure beats all these home flipping channels who tell people to just buy and then flip for a profit...
🤣🤣 Appreciate the feedback. Glad I can help.
The was a video some time ago you gave us an example on how you make agreements with renters to move out if they not paying by offering them the deposit back to avoid the legal way. Would this work were you find houses going to auction and making them an offer to pay at original bond price and offering them 50k . To help them move .
Yes absolutely, this will be the route I will follow instead of the eviction process. Always try to resolve conflict with a clear and calm head instead of using force
Love the content, man. Could you maybe make a video concerning the expropriation without compensation bill that could be implemented in the future?
Thanks for watching and for the topic suggestion.
I Will look into it. 💪🏻
Hello Louis, do you have a video in which you discuss the various types of clauses to be included in your Offer to Purchase contract?
Unfortunately not, but it is included in my property course.
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Good day. I recently stumbled upon your channel. Thank you. It is very informative.
I am thinking of investing in commercial property. However I don't know the value per square meters. How do you calculate that or should you inquire it at the real estate companies.
Thank you very much for supporting the channel.
To get to the price per square meter, you simply divide the listing price with the floor size.
So let's say R5m ÷ 450sqm = +-R11000 per square meter.
Then you can use comps to see whether it's cheap or expensive
Thank you for the reply. I appreciate it.👍🏻
How do you duck agents as the seller would usually ask much less without using an agent?
There are private listed properties on property 24 or on FB marketplace. You can't really remove an agent from the process unless you purposely try to cut them out. There are possibilities of lawsuits if the agent was the effective cause of the sale and you bought the properry from the owner. So just be careful how you approach it . Hope it helps 💪🏻
Good question
I enjoy your content, would you be so kind to share the Excel sheet with me?
Sure, you can pop me an email at louisreynhardt@gmail.com 💪🏻
Hi where can I research distressed /estate late properties
You will have to find it the old-fashioned way. Networking with agents and building relationships. Or to just enquire about listed property's on property 24 .
where can I find these auctions/what website are these auctions available and which ones are best?
You can start here and search for your area. www.myroof.co.za/search-for/?sort_by=&search_view_type=&client_type=&search_in=sub1962&search_proptype=Any&search_sellertype=Any&search_minprice=Any&search_maxprice=Any&search_bed=Any&search_bath=Any&search_min_floor=Any&search_max_floor=Any&search_min_erf=Any&search_max_erf=Any&search_garage=Any
We actually bought our house for a bargain via an auction
Thanks for sharing. Great to hear a different perspective. 👏🏻
Can you speak Afrikaanse?
I am afrikaans
Hi Louis, great content very insightful. I joined your membership to get access to the property analysis sheet. Please check your email. Thanks
Welcome to the channel brother. Apologies for the delayed response. I just replied to your email 💪🏻