Hi
Just wondering if anyone has bought a property that has been sold due to unpaid rates? How do you find these homes, what is the process etc.
Thanks in advanceSonya
It would be extremely rare for this to happen in Australia. A council could take action against a person to recover monies, get a judgment and then an order to sell property – but even if it did you would not necessarliy be getting it cheaply. The property would probably be auctioned.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi Sonya,
they are rare but they certainly do exist in Australia. I've had one great client who for the last 10 years has been flipping vacant lots sold by councils. The points she made me aware of when first inquired about these were;
– the auctions only happen infrequently and some councils only hold them ever 1-3 years due to the low volumes and significant legal work involved.
– just because a property is being sold this way is no guarantee of a bargain so research, research, research!
– the councils she had the most luck with were rural and remote communities where lots could be bought for $3k – $30k.
– the auctions can be very poorly advertised, the best way she recommended was to call up the local councils directly and inquire.Good luck and hope that helped some,
Andy
ps woohoo! Finally able to post on something I know about!
The other thing to bear in mind is if the Rates are in arrears then it is likely that if the property has a mortgage on the property this will be in arrears also.
It is not merely a matter of paying the rates and ignoring the outstanding mortgage.
Richard Taylor | Australia's leading private lender
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