The recent decision of the State Bank of India (SBI) to auction property where it has lent money and there are individual and corporate defaulters is good news for property buyers. In fact, it would help the country's largest bank to monetize its assets.
But for investors looking for buying a property to stay in it, the decision by SBI to auction properties is a bonanza.
Banks auction a property when there is a default on the part of individuals in paying their debts. Well, while some think that the bank auctioned property price would begin at the government guided value that is not the case.
There could be a discount of around 10-20 per cent depending on the location, the extent of default etc.
Here's How You Go About Buying SBI Bank Auctioned Bank Property?
You can visit the website of State Bank of India here
The auctions will take place on March 14, 2015.
There are shops, apartments and land available for auction. The bank has on the Magic Bricks website indicated the rates per square feet in various cities including Kanpur, Mumbai, Hyderabad, Bengaluru, Pune etc.
One sad feature is that the indicative cost per square feet is rather high and not really at a lucrative price.
There is also a helpline that is available which will assist you in case of queries. You have to leave your name and contact details on the magicbricks website and perhaps the officials of the bank would get in touch with individuals.
What You Should Do Before Buying The Auctioned Property?
There is a bid document in which you would find all the details of the property. Now, if you want to buy these properties do the following:
1) Satisfy yourself on the price
The very first step is to ensure that you are satisfied with the price. Remember, that there could be various ancillary costs that could surface and the auctioned property price needs to be at least 20-30 per cent cheaper.
2) Society Charges
Look for society and other charges that have not been paid by the owner, whose property is auctioned.
3) Municipal and other taxes
Make sure that all taxes to the government have been paid. This could be very high and could increase the cost of the apartment.
4) Look for repairs
What you should also do is check with neighbours about water and other basic amenities. Also, check for leakages and other maintenance that you would require. Parking and other ancillary benefits are a must. Remember, that interiors and a badly maintained apartment with lots of leakages could cost you quite a bit.
If you wish to buy a bank auctioned property, you are most likely to get the place slightly cheaper than the market rate. However, there are many issues that you are likely to face including the above. So be careful when you take a decision.