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Tags: RepossessionMarket Update | 18.10.10

How to Buy Property that has Been Repossessed in Australia

The number of homes being repossessed by banks in Australia is increasing despite pressure from the government for lending institutions to apply a bit more leniency to homeowners who are just beginning to struggle in making their payments. Even with greater leniency of lenders, more properties than ever are being repossessed by banks.

Whether you're looking to build a portfolio of properties to rent out, need a larger home, or are looking to move Down Under for the first time, the investment potential in many Australian cities is great, but buying bank repossessed property can be stressful and complicated at times.

Where to buy?

The majority of bank repossessed properties are sold at auction, and if you want to buy from an auction you need to have the money available before you start bidding. For people who want to buy property with a mortgage, you'll need to have a mortgage in place from a lender, and a certificate that proves you are approved for and can obtain the funds if you win the auction.

Here are some tips for buying bank repossessed property in Australia:

Consider the Location

If you're buying property to live in, the neighbourhood is extremely important. Is it located in an area that you want to live in? If you're buying a property to rent out, consider the type of person or family who is likely to rent the property – and whether it is in a good location. Is it a small, affordable home near universities? Is it a large three bedroom house that a family would want to rent out – and if so – is it in a desirable school district and near the grocery store and family entertainment venues? Location is important, but how you determine whether a property is in a good location or not depends on how the home will be used.

Consider the Property's Appraised Value

Is the appraised value of the property one that you're comfortable with? Is it reasonable to think the property could eventually be worth more than it's current appraised value after renovations? The answer to this question helps you determine whether a bank repossessed property is a good investment or not.

What Extra Costs Will There Be?

Visit any bank repossessed property you're considering before you try to buy it. Look at everything from the roof to the electrical system to the plumbing. Look inside and outside. Try to figure out what kind of costs you'll have to pay on top of the purchase price in order to get the home ready for someone to live in. Add these estimated costs to the purchase price to make sure you still feel like the house is a good investment. You can hire a professional to do this on a property you're serious about – a few hundred dollars spent now could save you thousands of dollars in the future.

Consider Having a Professional Bid on Property For You

There are professionals who can go to auction on your behalf. Because they are not emotionally attached to the home, they'll stay within your budget range and will not be carried away by a bidding war. They can also help you early on in the process by helping you determine if a property is worth the price or not.

Back « An overview: The Australian Housing Market 2010
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Comments

Leave a comment

Caroline
17/07/2011

How do I acquire information pertaining to a specific address that is coming up for mortgagee auction? The mortgagee is the Commonwealth Bank. Thank you if you can provide any useful information.


0
michael hickey
02/08/2011

I am looking to buy a house in and around Cashmere, Warner,Eatons hill,Whiteside,areas from $450,000 to $550,000. If you have any repossessed homes in the area please contact me.


0
Keith Walshe
04/08/2011

Hi, Do you know of an institution in Qld that has access/knowledge to/of repossessed property and mortgagee property coming up for sale/auction. Any contact advice would be appreciated. Regards.


0
John
27/09/2012

Hi there,

How do we go about finding a register for reposesed homes?

Regards,

John


0
sonia cotroneo
09/11/2012

How do we go about finding a register for reposesed homes?


0
Allan
22/01/2013

Hi Can you please advise how to find Bank repossessed proprety in Sydney region Is there any website.

Thanks Pls reply


0
manel
03/02/2013

hi how do we go about finding register for reposesed home please


0
Debbie Snell
18/02/2013

do you have a register for repossed homes in western australia


0
Andy
03/03/2013

Hi

Has anyone received a reply? I'm interested to know the details as to where repossed properties are listed.

Thanks


0
Bryan
13/07/2013

Where can we find the repossession list


1
Tamai Russell
22/10/2013

I am looking to purchasing a repo home from

I m looking at purchasing a property from $450 - $550 in and surrounding areas of southern river 6110 WA. Also where can I find the repossession list


0
John dewit
04/11/2013

Could you please tell me where I can find the repossessed homes register thank you.


0
bianca
19/12/2013

Could you please give me a listing to find repo homes in NSW


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Georgina
08/01/2014

I am looking to purchase repossessed homes, can you please tell me where I can find the repossessed home register thank you. Much appreciated.


0
Diane
10/10/2014

I am looking to purchase repossessed homes, can you tell me where I can find the repossessed home register thank you. Much appreciated.


0
Diane
10/10/2014

I am looking to purchase repossessed homes, how do I go about It to buy a repossessed home in New South Wales.


0
Glen Boylan
10/01/2015

I am looking to purchase a reposed home in Adelaide and surrounding areas in SA. How do I go about this. Thank You


0
Dannie
11/01/2015

How do I find information pertaining to a specific address that is coming up for mortgagee auction? The mortgagee is the Commonwealth Bank. Thank you if you can provide any useful information


0
Petar
21/02/2015

I am looking to purchase a reposed home in Adelaide and surrounding areas in SA. How do I go about this


0