When I was home last Dec,I attended a real estate auction held by Garam Auctioneers in an office near Kenyatta market shopping center. A 3 bedroom house in Greenfields estate which I conservatively valued at 4 million,was bought for 2.8 million. Anaa 3 acre shamba in Nakuru sitting on a road kabisa was auctioned for 130k....both of these loans were owned by barclays. I'm smelling big profits in this biz.

Is there anyone who has experienced buying properties at such auctions? Are they straight deals as far as getting titles ama ni kupigana na the former owners? Any insight from guys who've actually done this???

'All they see is my glory...they don't know my pain. Nothing good comes easy in life.' - Multibillionaire Nelson Muguku Njoroge

The crazy thing about property or land auctions in Kenya is that most people view it as immoral.To me that's utter nonsense.If you lose your home because you did not pay your loan,then why should you be upset with me for buying the house from the bank.I am always discouraged by my family and friends from buying this properties. They keep saying that owners will have me killed.Yet i know guys who have plots and houses from this auctions with no issues.The law states as soon as the hammer comes down and you have the highest bid the deal is final.Go ahead and buy .


HOPE IS NOT A STRATEGY FOR INVESTING

in fact the NSE share sale is a good example of the auction similar to what Limuruboy is describing. Why then would you wait for shares to fall so that you buy? The only difference comes about because for shares you never get to know who cleaned you out. Ukipata nyumba ama shamba inauzwa,nunua.

Disclaimer: Never buy your neighbour's auctioned property. It will haunt you forever especially if they become destitute. Otherwise,no emotional attachment involved.

The definition of your enemy is: 'Your former friend'

@Kesh Money: Check any paper, any day!

The reason why these properties go for such low prices is because the bank has reached a point where they accept it is better to get something than nothing. An auction is a quick way to recover what is owed but unfortunately the realisation is very low. This is because once you advertise an auction and the hammer falls, you have to sell at the highest bidded price. Open market bidding usually realises higher returns since you can always tell the interested parties to review their bids using a determined reserve price as a basis.

My brothers normally visit these auctions to buy repossessed cars and they are making good money from them! Are they haunted by cashing in on the misfortune of others? Nope .... they are actually living large! Can't begrudge them that!


Immorality: The morality of those who are having a better time!

@Gizzard

Small correction but educate me if I'm wrong. If the previous owner can obtain an injunction, it would be to stop the auctioneer from selling the property. Once the auctioneer is allowed to sell the property, there's little the previous owner can do to stop the transfer of title! Unless ofcourse he/she knows someone at Lands office!



Immorality: The morality of those who are having a better time!