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Steve, you are spot on with the info on distressed sales.
At a sheriffs auction here in Vic. a few months ago I bid on a two bed flat situated in my area that eventually sold for $82k which was worth $120k.
I had done a lot of research and the whole matter revolved around unpaid body corp fees of about $1600…..the title was free and clear.
Sounded good but the things to consider were…..If you win it you must pay in full on the spot by bank cheque, eftpos, or similar method.
If you cannot pay the auction starts again, which in this case actually happened.
Before the start of the auction it was asked where the title was and the answer was “unknown”.
This property had been auctioned months before but did not reach the reserve so a court order was obtained to sell it without reserve.
So for me the problem was…..how much am I prepared to tie up for maybe 12 months while I get a court order to get the title issued in my name…….I punted $75k and another guy won at $82k.
To be honest I would rather have had the title encumbered with a bank involved.
So sheriff auctions can be great but be aware you are up against seasoned pros who bid to a limit for good reason.
Cheers Mike
