State Bank of India & Punjab National Bank are coming up with mega e-auctions
for 1000’s of their properties. Often one of the most ignored channels,
#BankAuctions can be extremely beneficial for certain buyers.
Why buy?
1) Lucrative prices - discounts can go upto 20% (even 30%) of market prices
2) Access to #PrimeLocations where sometimes developer/resale inventory is very
low
3) All RTMI units - so low possession related risks
4) Most units are due diligence cleared
Why not?
1) Properties sold are on ‘as-is where-is’ basis. Could lead to additional
#post-possession costs
2) Time consuming process to review bid terms carefully (must)
3) Any inherent title disputes could lead to obstacles in ownership
4) Onus of vacating any occupants is with buyers as banks only have symbolic
possession which gets transferred
5) If you don’t have liquidity to fully pay up, your earnest money can get
forfeited for delays.
Lastly, some buyers have sentimental restrictions in buying an auctioned
property for self use.
In summary, Bank auctions are a great option for investors of high end
properties having enough liquidity and legal support at helm. For others, it’s
good but with certain caveats. One may consult their real estate advisor for
more.
#property #realesate #TheGoodBrokers
Posted by Bhavin Mehta on LinkedIn
link: linkedin.com/in/bhavin-mehta-09
for 1000’s of their properties. Often one of the most ignored channels,
#BankAuctions can be extremely beneficial for certain buyers.
Why buy?
1) Lucrative prices - discounts can go upto 20% (even 30%) of market prices
2) Access to #PrimeLocations where sometimes developer/resale inventory is very
low
3) All RTMI units - so low possession related risks
4) Most units are due diligence cleared
Why not?
1) Properties sold are on ‘as-is where-is’ basis. Could lead to additional
#post-possession costs
2) Time consuming process to review bid terms carefully (must)
3) Any inherent title disputes could lead to obstacles in ownership
4) Onus of vacating any occupants is with buyers as banks only have symbolic
possession which gets transferred
5) If you don’t have liquidity to fully pay up, your earnest money can get
forfeited for delays.
Lastly, some buyers have sentimental restrictions in buying an auctioned
property for self use.
In summary, Bank auctions are a great option for investors of high end
properties having enough liquidity and legal support at helm. For others, it’s
good but with certain caveats. One may consult their real estate advisor for
more.
#property #realesate #TheGoodBrokers
Posted by Bhavin Mehta on LinkedIn
link: linkedin.com/in/bhavin-mehta-09
