Distressed property sales are for those looking to buy a new home at a bargain price. You can buy repossessed houses for sale in the Western Cape at a price well below market value.
The following information will help you to find out what distressed property sales are and where to find them.
Purchasing a property is a big step for any individual. So it is a great idea to find a house that fits with your budget. Then you do not have to live in fear of being unable to pay your bond or home loan.
What is a distressed property?
A distressed property is one that is being sold by the financial service provider who financed the home. These properties could also be under foreclosure order.
What are the advantages and disadvantages of buying a distressed property?
The main advantage of purchasing a distressed property is that the price is usually much lower than that of houses on sale by agents or by owners.
You are also very likely to make a sale quickly. Because financial service providers often want to get rid of distressed properties as quickly as possible.
However, the downside to purchasing a distressed property is that you will have to purchase the property exactly as it is.
The financial service provider who sells the property will not be held responsible for any problems, flaws or damage to the house or the garden. Therefore you will have to take care of it yourself.
If you are looking to buy a property that needs repairs and fixing up in order to sell it on and make a profit, then this may not be such a disadvantage to you.
Where can you find distressed property sales in the Western Cape?
You can find distressed property sales in
- Cape Town
- Southern Suburbs
- Blouberg & West Coast
- Table View
- Mitchells Plain
- Somerset West
This is a list of areas that repossessed houses are for sale in The Western Cape. There are a lot more available in other locations.
There are many ways to find distressed properties for sale in the Western Cape and beyond. You can simply look online at the websites of companies that sell houses or look at the websites of auctioneering houses.
These types of companies often sell distressed properties and repossessed properties. Repossessed properties are similar to distressed properties and may be worth looking into as well.
You could also contact financial service providers or mortgagees directly. And ask about any distressed or repossessed properties that they may have for sale.
Otherwise, keep regular tabs on the properties for sale on the following websites:
- IOL Property
- IPS Invest Properties
- No Agent Properties
- Property 24
- Adoos Properties
You could also peruse online classifieds websites like Gumtree for lists of distressed properties for sale.
What to remember when purchasing a repossessed property
If you are serious about purchasing a property it is important to consider several things before you make any decisions or sign any paperwork.
Firstly, sit down with a pen and paper and work out what your monthly income and expenditure is right now.
Leaving out your rent, if you are going to be living in the new property that you buy. How much money can you afford to spend on a monthly bond or home loan payment every month?
Remember that you should still make sure that you have some money left over for your savings account. Or in case of emergencies and for spending money for yourself and your family.
Secondly, take this amount and work out what sort of price region you should be looking at. Can you afford a 1.5 million rand property or would you have to go lower?
You will also have to take into account whether you have any spare money that you can put towards a deposit. As well as all the fees that come with buying a property (transfer fees included).
If you cannot afford a deposit, you will have to think about taking a full home loan or bond for you property. Which means that you will spend more on it because of the interest.
You should also make sure that you check the property out thoroughly with a construction and building safety expert. So that you do not end up buying a property that will cost you more than it is worth to renovate.
There is quite a variety of repossessed houses for sale in the Western Cape. You can find lists of these properties and where bank repossession auctions are happening through your local branch.