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Tips On Buying Auction Property In Malaysia
uying auction or if a successful sale occur, they
foreclosed property is will have to move.
regarded as a way where
people can create a stream of Prospective buyer is also advised
income according to some famous to do the necessary search at
authors. But buying an auction local land office to confirm the
property is by no mean easy, rightful owner of the property.
there are many things one should To qualify for the auction,
look for when buying an auction prospective buyer are required to
property. Normally a notice for prepare a bank draft or banker's
an auction sale is advertised in cheque equivalent to 10 percent
the local newspaper two weeks of the reserved selling price.
prior to the actual auction date
and buyers are to do the During the actual auction day, if
necessary inspection before going the property is priced at a very
to the actual auction. When the attractive figure, prospective
property is to be auctioned off, may have to fight with others by
normally some of them are already bidding for a higher figure where
abandoned by their owner and quick decision are required at
locked and this make inspection the auction hall.
rather difficult unless the buyer
want to enter the property in an If there is no bidder on that
unauthorised manner. Another faithful auction day, then the
possible case is that the owner property will be auction again
is still occupying the property with a cheaper price, normally 10
and inspection under this percent below the previous tender
circumstances is rather price. So if there is no bidder,
impossible as normally owner you may want to wait for the next
would not welcome buyer to enter auction but bear in mind lower
their property knowing well that price may attract more bidders.
using the auction property itself
Successful bidder is normally within the very short time frame
given 90 to 120 days to settle of 120 days.
the balance of purchase price.
Sometime for a property to reach Another thing the buyer should
a stage of it being auctioned, take note of is that if the buyer
there may be many outstanding is buying the property for
bills like assessment, quit rent, trading purposes with the
maintenance charges or utilities intention to resell it to third
bills that have yet to be party for a profit, then the
settled. Apportioning those buyer should take note that the
outstanding payment between transfer of the auction property
yourself and the financial cannot be transferred to the
institution that called for the third party directly. The auction
property to be auctioned may take property must be transferred to
some time. This coupled with some the name of buyer first by the
other red tape may make release court before the buyer who is now
of payment from your financing the new owner can transfer the
bank rather slow and make 120 property to whoever that buy the
days seem like a very short time. property from him which mean that
So it would be easier if buyer who buy the auction
prospective buyer has some kind property for trading should take
of financing ready like having into account the government stamp
some other property to charge to duty and legal fees involved in
the bank for ready financing in transferring the property into
which case the purchaser would be his name first. The transferring
able to purchase with cash process can take quite a long
obtained from the other financing time too therefore if the buyer
taking the burden off the of the auction property resell it
purchaser to obtain financing to third party, he will probably
have to wait quite a while before and therefore incur cost.
full payment eventually
materialised. Because the long If the original owner is
period of time involved, interest occupying the property, there
and financing charges have to be could be a case whereby the owner
taken into account too. Otherwise may refuse to vacate the property
the person who trade the auction when the bidder has successfully
property may find that trading bought the property in which
auction property is not as case, court order may be required
profitable as he initially to evict the occupier and
thought. therefore the cost involved.
As there are difficulties It is because of the uncertainty
involved in inspection of the and hassle involved in buying the
auction properties as mentioned auction properties that make the
above, prospective buyer who want general public reluctant to even
to buy the property for whatever try, therefore sometime even when
purposes has to allow for repair the property is priced very
cost as sometime the exact cheap, there may be not many or
condition of the property cannot no taker. However for those who
be ascertained. are daring, with strong heart and
financially sound, the auction
Prospective buyer should also may just present an irresistable
check whether there is a caveat opportunity for fantastic return
on the property as removal of on investment.
caveat may require court order
About the Author:
Mr BT Khoo is the webmaster of Malaysia Real estate http://www.realestate2u.com.my , the property listing and search engine web site in Malaysia
Source: www.isnare.com
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