The global economy greatly affects the prices of homes in Australia, and the number of bank repossessions increases every time the global economy suffers. While some lenders are more lenient with homeowners who have a history of paying their house payment on time and being long-term customers, the rate of bank repossessions still rises when people face unemployment and financial hardships. Buyers looking to break into the Australian home market may find that purchasing a repossessed home helps them save money on a home purchase. However, there are some steps buyers should take to ensure that they end up with the home and property they want.
Inspecting Repossessed Properties
While you may be able to view bank repossessions online or through a brokers portfolio, it’s always best to inspect repossessed properties in person before making an offer. Pictures can be deceiving based on the angles and areas photographed. While you may think you’re getting a steal on a great piece of Australian property, when you get there you may find that the house is in disrepair and the property is virtually unmanageable for landscaping. International buyers may be able to hire a representative to look at the property for them, but again this is trusting someone else’s opinion and viewpoint of the property. If you’re serious about buying property in Australia, make sure you have the time and means necessary to visit the property at least once.
During your visit, remember to evaluate the future worth of the home. Just because the home is currently selling at a repossessed price, that doesn’t mean it won’t sell for much more in the future. Talk to your real estate agent about the appraisal of the house and determine whether or not the investment you make can be recouped in a future sale.
Understanding the Auction Process
Most repossessed homes are sold through auction houses. The policies governing auction sales vary from working with a traditional Australian realtor, so it’s best to understand how the auctions work before expressing interest in a property. You can bid for yourself or hire an expert to bid for you. The money will need to be available immediately, so it’s best if international buyers use a broker or other expert to bid at the auction. Understand that the value you see in a repossessed home is also being seen by other bidders, many who have few financial limits. Don’t go overboard and remember that more homes will come on the market. Buying a foreclosed property in Australia can be an exhilarating experience, but remember to know your limits, understand the buying process, and talk with a realtor or broker if you’re unsure about the purchase and don’t hesitate to learn more about how Australian real estate buyers are protected.