Real Estate Investor October 2022 | Page 26

COMPANY PROFILE

WIN-WIN FOR ALL

In scenario one , we see what usually happens to the distressed property owner when they ’ re forced to sell at a distressed property auction . For example , you the investor snaps up a property with a market value of R900 000 for R750 000 . You finance the property at 100 % and only pay the transfer and bond registration fees of about R50 000 . And even though you finance the property for R750 000 , you register the bond for R900 000 ( the market value ). But this means the distressed owner has had to sell below value at R750,000 , and then eventually after all costs they walk away homeless with next to nothing or still in debt .
26 OCT 2022 SA Real Estate Investor Magazine