Buying a house that has been repossessed is a good thing as you are likely to get it for a good price, but remember that not all repossessions are in good condition. The house might be dirt cheap, but be in a shocking condition so you would have to spend a lot of money on fixing it up. If this is the case and you are still going to make a profit, then that’s fine, just don’t dig yourself into a hole. Homes like these are often sold at auctions that are held by a bank, so what you have to do is find out where these auctions are taking place and by which banks.
You can visit your nearest Nedbank, FNB, ABSA or Standard Bank to find out when they are having another auction and during that time you can get ready and make sure that when you are buying a house that has been repossessed you know what you are doing. Repossessions are nice to purchase because you can do what you want with them; whether you want to live there yourself, fix it up and sell or rent it out, the choice is yours. You get it for a good price, so you can decide whether to keep it as is or maybe put some more money into it so that you can sell it for more.
You can go to all the banks in your area and ask them about the auctions that they have, and maybe they will even be able to give you a list of the upcoming ones you might like to attend. Auction events are frequent in Gauteng, Cape Town and Durban. There is absolutely nothing wrong with buying a house that has been foreclosed by the bank, as long as you know that you are not getting ripped off for it and you have good intentions with the property, then that’s fine, and who knows, you might even start a business of your own out of it!