Buying bank owned houses is always a bonus because when it comes to repossessions, you always seem to score a property for a decent price. Most of the banks in South Africa, like FNB, ABSA, Standard Bank and Nedbank to name a few, often have auctions where they will sell off houses that owners can no longer afford to live in. What happens is the owners will go into the bank, apply for a bond and it is approved, then after some time, if the owners are not up to date with their bond payments and can’t afford the bond any longer, the bank will repossess the property and sell it at an auction to regain the money they lent to the owners for a bond.
So now you are wondering how can you get your hands on bank owned houses? Well it’s quite simple really, all you have to do is pop into the ABSA, FNB, Nedbank or Standard bank branch that is near to you and ask them about their repossessed homes auctions. They should be able to give you lists of the auction dates, times and venues and all you have to do is make sure that you are there when it takes place. Some auction seats are limited, so you might have to book your spot, but they will tell you all this at the bank if you ask.
Bank repo houses in South Africa are great to purchase as your second home, it’s perfect for first time buyers, or even better as an investment. Purchase one for a good price and spend a bit of money on renovations, that way you can rent it out or even sell it and make back a whole lot more than you paid for it.