The current economic crisis has resulted in Banks worldwide repossessing homes and properties and being forced into a position of having to offload an ever increasing property portfolio.
In America, where the real estate crisis began, it is believed that it could take between 5 – 10 years before the forced or distressed sales have worked themselves through the market.
This has caused a situation where buyers can either make offers directly to Banks, buy on auctions where the Banks are releasing properties, or rely on the traditional route of utilising the services of an estate agent.
The South African situation is very similar where properties in possession of the Banks are being released onto the market the at significant discounts to the perceived value of the property.
In many instances, the Banks will accept offers of 10 % below the bond amount which can equate into a decrease of 30 % on the value of the house according to Tony Clarke, MD of Rawson Properties in South Africa. “For example, on a R1,1 million home bonded for R1 million, the bank might easily accept a price of R750 000 to R850 000” said Clarke.
Cash is certainly king in the current property market and there are bargains for the astute buyer. Jeffreys Bay is not immune to the crisis facing embattled consumers in the country and an excellent investment opportunity has just come onto the market.
A Commercial property in St Francis Street opposite the Our Times newspaper is available for R 380 000 excluding VAT. The shop which is 79 sq/m in size has a municipal value of R 632 000. This equates into a selling price of less than R 5000 p/m 2, a good deal in any market.
The levy is R 675 per month and more information can be obtained by emailing: