How to turn a Nedbank Repo into a great investment
Repossessed Property Tips: Nedbank – how to get the most out of repo bargains.
What are Nedbank owned properties?
A Nedbank Owned Property (NOP) are houses or vacant stands bought on public auction by Nedbank. These properties are usually bought to recover the outstanding debt on a home loan.
Nedbank periodically updates their list of NOP’s and makes this list available online as a download to the public. Download the NOP List here.
Considering making an offer for one of these properties?
Complete an offer-to-purchase (download) and email (olen@propertyloans.co.za) or fax (086 5011 831) it to us.
We’ll submit the offer and relevant documents to Nedbank and arrange your bond finance.
| Advantages | Disadvantages |
|---|---|
| Big Bargains | Non-refundable deposit |
| No Transfer Duty | Limited time to act |
| 100% Bonds | No guarantee of vacant occupation |
| Properties are sold voetstoets (“as is”) |
By far, the greatest attraction of repossessed properties is the potential of securing a valuable home at a relatively cheap price. Other advantages include not having to pay any transfer duties and the ability to secure a full 100% bond.
A perfect example:
This property in Shetland Road, Newlands is an excellent example. Situated in a very sort after neighbourhood in Cape Town; close to two of the top schools in the country; and within walking distance of the Newlands Cricket Stadium.
Properties in this area are seldom available.
This Nedbank Owned Property was bought by Nedbank from the financially troubled Mclachlan Familty Trust in August 2009.
According to the Deeds Office records, the most recent municipal valuation of this property, completed in 2007, came in as R3.25mil. But Nedbank bought this property from the trust for just under R2mil!
Transfer Duties on a R3.25mil home would amount to over R200k. That’s a further R200k saving.
If you’d like to make an offer between R2mil and R3mil on this property, complete an offer-to-purchase (download) and email (olen@propertyloans.co.za) or fax (086 5011 831) it to us.
We’ll submit the offer and relevant documents to Nedbank and arrange your bond finance.
The Disadvantage of by these properties is that Nedbank would request a non-refundable deposit of up to R10 000. This deposit is used to pay part of your attorney costs.
You have 48 hours to pay this deposit and 21 days to secure the bond.
Also note that all Nedbank Owned Properties are sold voetstoets (“as is”).
[Image by PatchworkPottery]