Bank asset disposal centres in SA are a bargain-hunters dream where buyers can take advantage of low prices of assets that have been repossessed by the bank. This includes a number of valuable assets and securities such as property, vehicles and electronics.
What are bank assets?
Bank assets refer to what the bank owns; the financial and physical property of the bank including reserves, investment securities, loans, and physical assets (such as buildings, furniture, land, equipment etc.). At most banks, the largest asset they own are loans which generate revenue through interest paid by the borrower. These loans are the legal claims that banks have against the property of wealth of people they have lent money to. Loans can be given to consumers (as personal loans, home loans, car finance, credit cards) or businesses (capital investment and real estate development loans).
What purpose do bank asset disposal centres in SA serve?
A bank will dispose of physical assets that have been repossessed when a borrower defaults on a loan. As a financial services providers, banks repossess vehicles and other assets from people who can’t afford the regular monthly instalments, from people who have abused the lending terms and conditions, or from people who have listed the asset as a security against their failure to pay what is due on the loan amount.
As more and more people today find themselves in financial difficulty in the midst of a global recession, assets that they could previously afford to pay off are now out of their reach. This means that the bank who loaned them the money to finance this asset needs to recover their loss by taking the asset back into their possession and selling to recover the amount still owing on the loan. There are a number of bank asset disposal centres that sell or auction off bank assets. These items are often sold at very reasonable prices as the bank is more concerned with recovering lost money than making a profit.
Where can I find a bank asset disposal centre in SA?
When it comes to buying deals on wheels, repossessed vehicles are usually sold on auction in the major cities. Auctions are held weekly at auction houses such as Burchmores and Aucor. You can also contact the bank directly to see where and when the next sale will take place and what assets they have available. Another option is to try the online resource My Cars, www.mycars.co.za, where you can find a listing of the vehicles different banks have up for auction.
If it is a good property deal you’re after, try My Roof (http://www.myroof.co.za) for a listing of bank repossessed property. At the top of the homepage you can click on the name of a bank (Standard Bank, Absa, or FNB) to choose which bank repossessed assets you would like to view. You can also find an online listing at Property Seekers (http://www.propertyseekers.co.za/bank-repossessed-houses) which has a special section dedicated to property that has be repossessed by the bank. You can also ask your local estate agent if they have any repossessed properties selling through their agency.
The most significant benefit of buying repossessed bank assets is most certainly the price. However, it is important to still be discerning when buying to make sure that the deal is as good as it looks. Inspect the property you want to buy carefully, as there may be defects that don’t immediately meet the eye. It is also important to compare the price of the asset against similar offerings on the market so that you can get an idea of what you should be paying on it. If the deal is a go, don’t hesitate in making a move – if you’re getting a good buy, you won’t be the only one who recognises it! Keep a close eye on bank disposal centres so you can take advantage of competitively priced bank assets.