Have your eye on the prize?

Someone else’s loss will now become your treasure

House repossession is one of those things that make it weird to celebrate. One person is losing their investment due to financial troubles, while another person will be gaining something at a price below market value. This article will explore ways to prepare for the purchase of a repossess home.

1. Know how to go about it

Buying a repossessed home requires research so you know what you are getting yourself into. Weigh your intended use of the property with how much you are willing to spend on it. Perhaps you are looking to buy to rent it out, live in it, or use it as business premises.

2. Location location location!

The neighbourhood plays an important part of property consideration and as a potential buyer, you should familiarise yourself with it. Remember that the property is sold  voetstoots.

3. Seek legal advice

Let your attorney know that you’re interested in purchasing a repossessed home. Doing this will allow you to access documents where you are able to assess the terms and conditions of the sale. This is the chance to have things explained to you so that you are not caught out after agreeing to the purchase.

4. Get your money ready

A 10% deposit is required as soon as your win the bid on the property. You should also consider the fees that could come with the purchase, such as transfer fees, commission, arrears, and any other charges that will ensure the property is transferred into your name. It is also advisable to get pre-approval from your bank, just so you know how much they will be willing to give you. If the property is owned by the bank, there is no transfer duty payable.

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