The banks apparently prefer this type of arrangement instead of suretyships under which banks can recover debt in cases of default, but normally with great difficulty.  As a result, applying for a joint mortgage is smiled upon by the banks due to the fact that more than one person is liable for the debt.  Absa is one bank that prefers this type of bond and as a result has no limit to the number of people who take out the bond jointly.

One of the prime markets for co-ownership is the first time buyer market, as well as investor groups.  The reason this is so appealing to these markets is due to the fact that the risk is spread. One of the main areas that this type of purchasing is on the increase is in holiday home purchasing.  As we only spend a certain amount of time in our holiday homes, then it makes sense to share the cost of the home that you are purchasing.

Another option where co-ownership is something that you should think about is when you are looking to purchase a property as an investment to rent out to someone.  This way, should anything happen to the property whilst the tenant is in it; you and your co-owners are all liable.

However, there are a number of factors that you should consider before deciding that it is a good idea to have a joint mortgage bond with friends and family.

First, all partners have to be in agreement with the co-ownership and who gets what percentage.  This is imperative as there will be a number of costs involved such as rental patterns, rates and taxes, insurance, and so on.  It is therefore imperative that you go in to the venture with a watertight contract in order to safeguard all of the parties involved.  This contract also needs to cover issues such as the death of a co-owner; the defaulting of a co-owner, and any other information that you feel that needs be covered by the contract.

One solution to the horrible situation where one of the co-owner dies is to ensure that all of the partners have life policies with linked beneficiaries.  Therefore their share of the ownership will be covered in the event of their death.  Another issue that needs to be agreed upon is how a partner exits the co-ownership should they wish to.  Absa stresses that in any co-ownership mortgage, if one or more partners want out, then the loan has to be reevaluated.

Co-ownership is not something that should be entered in to lightly, especially with friends or family. As mentioned above, there needs to be a water-tight contract that everyone agrees to whole-heartedly in order to ensure that there is no bad blood shed between you and your family/friends. Although co-ownership has many benefits, the downfalls may not be worth it should you enter in to the contract with any doubts whatsoever. This is not something that should be entered in to without great consideration and advise from the financial institution who is offering the loan.

It is also necessary to get a lawyer involved in order to ensure that you have a contract that you all agreed upon. You also need to decide if you are willing to risk your friendship or relationship or if you think it will be strong enough to withstand any pressures that may occur as a result of the co-ownership.

Is it a good idea to have a Joint Mortgage bond with Friends or Family? is an original post from: Property Investment Sales

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“Bank Repossessed properties are the result of borrowers defaulting on their home loan repayments to the extent that the home loan has to be cancelled.” (www.iolproperty.co.za). There are 3 phases during the repossession process at which buyers can purchase these properties.

The first is Distressed Sale, the second is Sale in Execution (SiE), and the third is Properties in Possession (PiP).

Understanding the repossession process is important. There are various stages to this process:

1)      The borrower (property owner) has to default on his/ her payments to the point that the only option is repossession

2)      The attorneys representing the bank who has lent the money applies for a judgement at the magistrate’s court

3)      If the debt that is owed has still not been recovered at this point, the movable assets (i.e. cars and furniture) are auctioned

4)      If the money gained from the sale of the movable assets does not cover what is owed to the bank, then the property itself is auctioned (called a Sale in Execution). Up to this point, the seller may have tried to sell the property as well, which is known as a Distressed Sale

5)      Should the bank’s reserve price not be met in the Sale in Execution, then the bank is entitled to buy back the property – known as a Sale in Possession.

If you are looking for repossessed houses in Gauteng and Cape Town, there are numerous options and organisations you could consider.  In terms of auction houses themselves, Auction Alliance is an auction house specialising in property sales. Aucor is another key player on the South African property market playing field. The big South African banks all offer their own version of repossessed property auctions, usually linked to an auction house or a bond originator.

If you are looking for repossessed house auctions in South Africa, popular property websites are a good place to start. The Property24 website lists upcoming repossessed property auction dates, as do many of the other leading property websites. Iol.co.za also lists repossessed property auctions by the auction house, and allows you to search by your specific criteria. Myroof.co.za is linked to Standard Bank’s property repossession arm, and lists property auctions by price, type of property and price range.

Attending a repossessed property auction can be a real experience, and lots of fun. Some advice to the first timer though:

• Know your maximum limit up front, and do not be tempted to exceed this, no matter how excited you get during the auction procedures
• Make sure you keep your hand down if not bidding – there are numerous stories of people who have lifted their arm to swat a fly or scratch their nose, and have ended up the proud owners of a new property!

Buying houses repossessed by banks in Gauteng and Cape Town is a good option for the savvy buyer – just ensure you know how it all works, so you don’t get caught out!

Houses Repossessed by Banks in Gauteng and Cape Town is an original post from: Property Investment Sales

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Bank auction properties are regarded by most of their buyers as the smart buyers’ choice, given that great deals can be found if you’re willing to do the homework in looking for them and are willing to wait for the right deal. There are a number of factors to consider if you want to buy a repossessed or other bank auctioned property for the first time.

Firstly you need to know where to find out about what’s on auction, so aside from newspaper listings and adverts check out www.sasheriff.co.za, it’s a subscription site which will set you back R100 per month, but you get access to a full list of all the properties to be sold be sheriff’s right across South Africa. Also check out www.myroof.co.za this is free and gets you a full list of all the properties to be sold by three of the major banks.

Once you’ve found a property that you fancy buying, make sure you consider the price and the deal. Have a look around for relative prices in the area for similar properties. Not the list prices, but the sale prices as it is standard practice for a seller to list their property at a price quite a bit higher than what they expect or hope to sell at. So have a look at www.saptg.co.za or www.sahometraders.co.za to check out prices of similar properties in the same area. Then make sure you check whether there are illegal tenants and take a trip down to the city council to check whether there are any rates and levies outstanding.

This is one of the most important points, as auction properties are sold “voetstoets” and when you buy a property you become responsible for outstanding utility bills, and an extra R100 000 on what you were prepared to pay can negate the benefit of purchasing on auction straight away. Once you’ve done your homework, set yourself a maximum price clearly before going to auction and you should have no problem buying a public bank auction property.

Public Bank Auction Property is an original post from: Property Investment Sales

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There are more than a few reasons as to why you should choose Auction Alliance properties if you are looking to buy; if you are looking to make a real investment, then this is the place you need to contact to help you do that. They always put their clients first and it’s not just about the selling for them; they have a relationship with their clients and have their best interests at heart when it comes to selling properties to them. What their company believes in is “an auction lasts a few minutes, but relationships last a life time”.

Most auction companies only deal with partners in their country, but with Auction Alliance you will be happy to know that they have associates in other countries such as the United Kingdom and the United States Of America. They envelop each suburb in all areas, so they have a massive variety to choose from when you want to purchase properties from their auctions. Browse their website for an idea of what they have to offer, and contact one of their helpful and friendly representatives if you have any questions; you won’t regret doing business with them.

Auction Alliance Properties is an original post from: Property Investment Sales

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For those who are in the market to buy a house, then the repossessed homes on auction by South African banks should be the first place you should look. There are certain benefits to purchasing a property at one of these auctions. One such benefit is that should you purchase the property in your personal capacity you are not required to pay the transfer fees. Certain banks such as Absa, additionally offer discounted attorney fees should you finance your home through the bank. Another benefit that is on offer from Absa is that the property rates and taxes will be paid by the bank until the date of registration. So these repossessions are a great investment for those who are looking to purchase a property.

Whether you are looking for a new house, your first house, or a property to invest in, repossessed houses offer great value for money. The only downfall that can be thought of is that you have to purchase the house as it and banks such as FNB and Nedbank will make no repairs to the home in possession of the bank. Other than that, there is great value to be found at these auctions held by Standard Bank for example and if you want to buy a house you should look here first before visiting a real estate agent who is only looking for commission.

Repossessed Homes on Auction by South African Banks is an original post from: Property Investment Sales

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When houses are repossessed the Cape Town banks house repo auction events sell them off to bidders for cheaper prices then they would normally go for if sold normally on the market through an agent or even privately from the owner. You don’t have to only use the bank that you bank with, you can go to any Standard Bank, FNB, ABSA or Nedbank branch and find out what you need to know about the auctions where they are selling repossed properties. If you are only interested in houses in the Western Cape, then mention that when you are asking the bank about the auctions you want to attend so that they don’t give you details of auctions selling homes in areas you don’t even wish to live in.

If you haven’t visited an auction yet, it is a simple procedure and after being at one for five minutes you will know exactly what you need to do. These events are usually busy; there are always people on the market for repo houses, so you have to be quick and sharp when it comes to bidding. Visit as many of the Cape Town banks house repo auction events as you can if you want a shot at all of the bargains that are up for grabs.

Cape Town Banks House Repo Auction Events is an original post from: Property Investment Sales

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You might only be looking for a place in the Pretoria area, but that’s fine because Simply Letting in Centurion deals with properties in this area so it won’t be a problem. You can always search listings on your own, before you get in touch with one of the estate agents; you never know you might just find your dream house in a few minutes of looking through the listings. If you want to rent a house, make sure you know how much deposit they want and make sure you tell the agents that are checking the listings for you, how much deposit you can afford to pay. Also keep the water, refuse and rates in mind when looking at the rental of a place as many landlords add this on.

These agents are professional and friendly so they won’t mind helping you find a place, and as long as you give them all the details of what you are looking for they will do their best to find something that suits you perfectly.

Simply Letting Centurion – South Africa Property Rentals is an original post from: Property Investment Sales

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The place to find advertisements for houses sold on auction in Cape Town is online or in your local newspaper. Sometimes in the Western Cape it is even possible to see advertisements for homes on auction on street light poles and public notice boards. Repossessed homes are even sometimes sold along with the contents of the properties. You can thus buy a house for yourself and your family and buy it fully furnished or at least partly furnished. It depends on the home owner and how much they are indebted to the banks. If you are a first time home owner this is a great place to get your house. You can have a look at what it might look like before becoming involved at all.

If you keep an eye out for advertisements for bank auctions, you can even approach your bank about finance before you go. That way you don’t have to worry about not having enough for your perfect home, but can purchase one of the wonderful houses sold on auction in Cape Town.

Repossessed Cape Town Property and House Repossessions is an original post from: Property Investment Sales

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There is a formula to follow, which contains a lot more information than this article should, so when you are wondering “what’s my business worth?” these are the key points to look at: book value, liquidation value, replacement value, financial values, goodwill and business value. An evaluation of your company, using this information will give you a better idea of what you are looking at. Calculating the figures and following the formula isn’t always the easiest thing for someone to do, and this is why it is sometimes better to get a financial advisor or a representative from an evaluation company to assist you.

Many people say that in the first five years of you opening your own business, you won’t make good money, but is this really accurate? If you know what you are doing and are doing it well, there is no reason why you can’t see an excellent turnover in the first year of opening your doors. Starting your own business is not easy, but if you have come this far, then you are doing well, and all you have to do now is find out the answer to the question that’s been on your mind for some time; “what’s my business worth?” and take it from there.

What’s My Business Worth? is an original post from: Property Investment Sales

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There are many different venues where auctions selling Cape Town repossessed property takes place, you should visit the banks in your area and enquire about the details. Repossessions don’t necessarily mean that there is something wrong with the house; it simply means that the bank is selling it. They might sell it as is, meaning you will get it at a good price but you have to do the fixing up yourself, but that is fine, you can always do it over time. There are hundreds of banks within the Western Cape, visit a few of them and find out when and where their next auction is and make sure you attend!

Always pay attention to the bidding and never bid more than you can afford. If you don’t have the finance to support the bid, you are going to be in a real sticky situation. Once you have won the bid, the house is yours and you have to pay the agreed amount, there is no turning back. Therefore, before you shout out your bid, make sure that you can afford the amount in question! Find the nearest auctions selling Cape Town repossessed property today and go get the home of your dreams!

Auctions Selling Cape Town Repossessed Property is an original post from: Property Investment Sales

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