How to find mortgagee sales and whether they are a bargain?
- Thread starter giraffez
- Start date
When you do see it on an ad it is usually released as a marketing ploy to bring people like you out of the woodwork - can actually drive the price up.
The only way is to do some real legwork - get around and develop relationships with agents and get on their calling lists - you wont get on their list unless they believe you are ready and willing to move fast.
Ciao
The only way is to do some real legwork - get around and develop relationships with agents and get on their calling lists - you wont get on their list unless they believe you are ready and willing to move fast.
Ciao
Agents have a obligation to the seller to get the best price possible. Advertising it as a mortgagee auction might only attract vultures so I would say this would only be a last resort for them.
If you are looking at buying in Western Sydney then nearly every auction you go to will be either a Mortgagee Sale or a Housing Department sell off. The agents won't advertise it as such, but that will be the case. Not sure of other areas in Sydney, but I would suspect the same unless the property is unique or the agent is partial to auctions.
You can get terrific bargains with these properties, but you can also pay too much. It all depends on a plethora of things. The important thing to note is that you need to know what is/isn't good in terms of prices in the area you target.
If you are planning on going down this route, then you need to be prepared to go to many auctions with the intention of purchasing, but stop at a predetermined sum. If there is a lot of activity at an auction, especially from Owner Occupiers, then do yourself a favour & keep your hands in your pockets. If you go to another & you are the only bidder, that does not necessarily mean you will get a bargain either. It will depend on what the reserve for the property is. Sometimes they will be very low, sometimes high. It's a numbers game.
Bear in mind the state of the market also. In a rising market many will go to an auction believing they are going to get a bargain when in reality they won't. In a slow market, an auction can be a good strategy to use.
You can get terrific bargains with these properties, but you can also pay too much. It all depends on a plethora of things. The important thing to note is that you need to know what is/isn't good in terms of prices in the area you target.
If you are planning on going down this route, then you need to be prepared to go to many auctions with the intention of purchasing, but stop at a predetermined sum. If there is a lot of activity at an auction, especially from Owner Occupiers, then do yourself a favour & keep your hands in your pockets. If you go to another & you are the only bidder, that does not necessarily mean you will get a bargain either. It will depend on what the reserve for the property is. Sometimes they will be very low, sometimes high. It's a numbers game.
Bear in mind the state of the market also. In a rising market many will go to an auction believing they are going to get a bargain when in reality they won't. In a slow market, an auction can be a good strategy to use.
Repo properties in western sydney are reasonably easy to work out from looking on the internet. These houses are vacant, so the pics are all of unfurnished houses. Many have tops kitchens and/or bathrooms (overcapitalising on the property before losing it) or the place looks good from the outside but falling apart on the inside. Some pics on the net show a window or wall with a piece of paper stuck to it, this is the repo letter from the bank. And as Skater said, they will be up for auction. Very few vendors put their house up for auction out west.
I've been to a few repo auctions lately and most of the houses have been a bit pricey. The banks try to recoup as much as they can and in a falling western sydney market they are stretching for top dollar to get close to getting their money back.
I've been to a few repo auctions lately and most of the houses have been a bit pricey. The banks try to recoup as much as they can and in a falling western sydney market they are stretching for top dollar to get close to getting their money back.
Does it really matter? If your after a good buy it doesn't just have to be a mortgage sale. Vendors are motivated for many different reasons.
Buying a mortgagee sale or any other bargain gets you a one off profit, but make sure you buy the right property not just a cheap property.
We all know you make your money when you buy - but it's not necessarily buy buying a bargain or cheap.
For example, some of those mortgagee auctions in Sydney's western suburbs will take years before they increase in value, while other suburbs are increasing by double digits
We all know you make your money when you buy - but it's not necessarily buy buying a bargain or cheap.
For example, some of those mortgagee auctions in Sydney's western suburbs will take years before they increase in value, while other suburbs are increasing by double digits
That is very interesting Michael.....can I challenge your commentary?
I live in NSW and the government here is putting a lot of money into infrastructure, the primary reasons I see increases here are:
1. Parramatta is now getting a bulk of govt offices moving there
2. Logitics companies are increasingly moving out to places like Blacktown and Liverpool.
3. Increasingly companies are placing their offices are placing their offices where their staff live - Western suburbs now has over 35% of Sydney's population. CBA moved to Homebush Bay and Woolworths moved to Baulkham hills.
4. New transport infrastructure development is almost exlcusively being placed in the Western suburbs.
5. The houses in some Western surburbs are now being sold almost at land value.
Based on these Western Sydney still offers potential over the next 2-3 years - medium term. Also, given you can now buy houses in the 180-250k mark it allows people to get in at affordable levels, whilst rents are rising at about 10% pa in Western Sydney.
Also, eventually affordability will drive people out there. Particularly given the cafe strip being developed in Parramatta.
I have invested in the so called ugly duckling suburbs and to date....their increases have matched if not exceeded the better suburbs. When cashflow and out of pockets are factored in they often out perform.
That is very interesting Michael.....can I challenge your commentary?
I live in NSW and the government here is putting a lot of money into infrastructure, the primary reasons I see increases here are:
1. Parramatta is now getting a bulk of govt offices moving there
2. Logitics companies are increasingly moving out to places like Blacktown and Liverpool.
3. Increasingly companies are placing their offices are placing their offices where their staff live - Western suburbs now has over 35% of Sydney's population. CBA moved to Homebush Bay and Woolworths moved to Baulkham hills.
4. New transport infrastructure development is almost exlcusively being placed in the Western suburbs.
5. The houses in some Western surburbs are now being sold almost at land value.
Based on these Western Sydney still offers potential over the next 2-3 years - medium term. Also, given you can now buy houses in the 180-250k mark it allows people to get in at affordable levels, whilst rents are rising at about 10% pa in Western Sydney.
Also, eventually affordability will drive people out there. Particularly given the cafe strip being developed in Parramatta.
I have invested in the so called ugly duckling suburbs and to date....their increases have matched if not exceeded the better suburbs. When cashflow and out of pockets are factored in they often out perform.
"Thems is exactly my sentimonies" - Moe Sizlac
I live in Castle Hill, just around the corner from Norwest Business park. The amount of big business' moving the offices, and also their distrubution, out here is astounding. Resmed, for example, have consolidated all of their offices and labs into one gigantic national head office.
Companies like Mitsubishi Electric do all of their distribution from the Erkine Park industrial zone (along with many other massive consumer goods distributors).
Then there is also the planned urban redevelopment of St Marys, and the connection of Queen st under the rail line... and the shopping centre being built for the Ropes Crossing area.
..... and all the points sash made above
agree with you there, Iv been to a few mortgagee auctions where people have
over payed for property's
I just bought a place last week before auction I made the vendor's an offer which
they accepted lucky for me because if the property went to auction it would of
gone for an extra $20k.
Deceased estate is when the owner dies and the property is sold by the person's estate.
A mortgagee sale is when the owner (presumably still alive) doesn't pay the mortgage and the bank takes it back and sells it.
Alex
Not unless the deceased still resides at the premises.
We bought a deceased estate a few years back. No problems. It was in very good condition and the prospective tenants had no idea of the circumstances of the acquisition. A house is a house.
Cheers,
Bazza
No different to any other house.
This thread, and the one by the same poster on a Hornsby OTP unit, makes me think the OP needs to do a lot more research and keep their wallet in their pocket for now. We all started from little to no knowledge of PI, and it's wise to do some research and reading of a variety of sources prior to buying.
Here is a link to a ninemsn story that has some relevance to this thread....
http://news.ninemsn.com.au/article.aspx?id=441033
Google search NMD data brings up this link which might also be of interest...
http://www.nmddata.com.au/index.php
Cheers
watto
http://news.ninemsn.com.au/article.aspx?id=441033
Google search NMD data brings up this link which might also be of interest...
http://www.nmddata.com.au/index.php
Cheers
watto
The deceased would have to pay rent of course.
