Buying auction properties is a smart investment idea

Q: I want buy property through auction , may i know the rules and regulation

rahul kirmani, Delhi

23rd July 2013

Investment Advice in Delhi

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Hi all Many times I hear about e-auction of property in Delhi? please tell more about this I really want to know this kind of option available in the market....

Vibhor, Delhi

20th October 2015

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The central government are going to launch its own online real estate portal which will have encumbrance-free properties available for auction. Prospective buyers can expect the properties listed on the portal to be free from any disputes, and hence, they can be considered safe investment options.

david.m,

21st October 2015

Hello all, I would be happy if anyone tell me about "Investment in Property buying through an auction process"? Is it safe for future prospect...

Vibhor, Delhi

20th October 2015

Comment

Great nagpal,
I think an auction properties are a great way to invest in real estate properties at prices which are much lower than the prevalent market rates. Buying properties at auctions is one of the option in current market but it is not completely risk-free investment. you have to gather lots of information before investing in this types of property.

V. Victor,

20th October 2015

Thanks dear, I like to know what is the advantage and disadvantage of buying an auction property?

Vibhor, Delhi

20th October 2015

Hello Nagpal,
There are various advantages of buying and auction property i.e:
1. The benefit of buying a property in an auction is that these properties are generally available at rates lower than the market price. say 20 to 30 % lower than market rate.
2. competition in this type of property market are less.
3. Potential to invest in established localities.

V. Victor,

20th October 2015

Disadvantages of buying auction properties:
1. It is safe to assume that since the owner was not financially strong enough to repay the loan, he might not have been capable of maintaining the property.
2. Auction properties often involve incidental costs which can include outstanding taxes, utility bills, society fees and disconnected services.
3. Required lots of Research and required more cash component.

david.m,

20th October 2015

The biggest advantage of buying an auctioned property is that you may get a property at a substantial discount as compared to the prevailing market price. The discount is available as the bank wants to sell off the property as quickly as possible. The motivation on the part of the bank is that they want to recover the dues, which are lower than the property price.

Aloke Kumar Singh, Greater Noida

23rd July 2013

Comment

Always check the Recovery Certificate of the property issued by the presiding officer of DRT (debt recovery tribunal). The certificate is issued to the recovery officer of the jurisdiction of the property with concerned bank.

Subho Mallik, Delhi

23rd July 2013

Comment

What is the benefit from buying property from auction?

Indu dixit, Noida

23rd July 2013

Public notification of the auction is displayed on the bank’s website and on newspaper. The public notice contains details of the property like reserve price ie minimum price at which bidding will start and Earnest Money Deposit (EMD), date of inspection, time and place of auction, time and place for collecting the ‘tender form’, last date for submission of tender form, etc.

Pranjal, Delhi

23rd July 2013

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