Most of us are by now aware of the prevalence of distressed selling at the moment. While it is very sad that the people who own the homes often have no choice but to sell because of their financial situation there are some great investment opportunities out there because of it.
Distressed selling is now even being seen in areas such as Franschoek,Clifton and Camps Bay, areas which were previously unaffected. Most of the properties sold at auction these days are to be considered bargains because of the poor growth in the market as of late and the fact that buyers are in short supply.
Many homeowners already had relatively large bonds and then also refinanced at some point generating even more debt for themselves. While most are hoping for a recovery in the market before the end of the year it may take a substantially longer time because of the global financial meltdown and the uncertainty it has brought with it. So we may see further increases in distressed sales and many more people turning to the rental market.
Investors who are in a position to purchase property at the moment would do themselves a great disservice if they don’t check out their local property auctions.
