Where can I find a listing of houses that are being auctioned (by a bank) in Australia due to foreclosure?
Question:
In Australia the system works differently to the US. You often won't even know that a property for sale or auction is a "mortgagee in possession" (ie foreclosure) unless the real estate agent decides to use it as an advertising strategy. In Australia, you very rarely get your house foreclosed by anybody other than the lender, so you don't tend to get the city or local authority auctioning off homes for back-taxes like happens in the States. And the lenders here aren't quite as ruthless; consumer protections are much higher here and the lender is obligated to get the best price possible for the property, not just get enough to cover their mortgage in the minimum amount of time. So properties that are sold due to foreclosure tend to sell at or near market value, not at a significant discount like can happen elsewhere.
The best way to buy under market value in Australia is actually to find a property that has been badly marketed, isn't advertised because the vendor is too cheap to pay for advertising, is being sold because of a divorce or death, or has disadvantages (ie ugliness or repairs required) that could be remedied for less than it the price has been discounted to take that factor into account. eg An ugly property may have little street appeal and it's very difficult to get anybody interested enough to go inside, but when you get inside it's actually quite a nice house, and the exterior could be fixed for $5,000, but because of the limited appeal it is selling for $50,000 less than it would with an attractive facade.
But generally, it's true that buying under market value is not as common in Australia than in the US.
An Investor Guide to Australia's Housing Market and Residential ... (PDF)
to 2004 when prices for established houses increased by 16.492%, 17.92 ... Banks, building societies, and credit unions are regulated by the Australian ...standardandpoors.com/spf/pd... - 1196k - View as html
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