Im­por­tant ad­vice be­fore you bid

Weekend Argus (Saturday Edition) - - PROPERTY -

1. Get to know the back­ground of the prop­erty – all the back­ground. 2. Do your home­work and know all the con­di­tions. You need to be aware of the de­posit costs and how much you need to pay and by when. Of­ten there are strict rules about the time­frame in which you have to raise the money, so it may not be suit­able if you are us­ing a bond.

3. Know your price limit. When you are in an auc­tion room full of peo­ple want­ing the same prop­erty, you need to be clear about your price to make sure you do not spend too much due to the emo­tion of the process.

4. The prop­erty is gen­er­ally sold on a “voet­stoots” ba­sis. This means you need to clearly note the risk as­so­ci­ated with the qual­ity of the prop­erty’s fin­ishes and faults.

5. You need to con­sider the risk of the prop­erty hav­ing rental ten­ants. In the event of an evic­tion, this can be a long and cum­ber­some process.

6. Be­ware the risk of hid­den costs such as out­stand­ing rates, taxes, levies and claims. In all in­stances there is no re­course.

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