News & Article

2021, the year for auction properties

It could be, 2020 was intense, the world was hit by a pandemic so bad that the world had to put their own country on lockdown to try and control the cases from increasing, from there, we have seen many initiatives taken by the government in our country, with bank moratoriums and help from the government, many have seen to be able to carry on with their life. 

 

However, there are also some unfortunate people who lost their jobs, we have read in news and articles where families receives help from the generous public to have a roof over their heads and some even lived with their young children in their vehicles. 

 

Fast forward to 2021, some say that it’s the year for auction properties, there are a few reasons to support this statement, here are the few.

1) unable to pay the housing loan
Even with the 6 months moratorium, some still find it hard and struggle to pay for the housing loan, hence, forcing the bank to take their property and put the property on auction to get back the money the previous owner owes the bank.

2) declare bankruptcy
If any  individual were to declare themselves bankrupt, they shall not have any properties under their possession, as such, the properties that they own will be declared as the bank’s property and the bank has the rights to auction off the properties that were once under the possession of the said bankrupt. 

 

3) Abandoned homes
If in any unfortunate event were to happen to an individual who do not have any family , next of kin and is legally declared single, the bank has the right to auction off the property to pay off the remaining debt amount.

4) Owner allows bank to auction the property without any personal issues.
Yes, you read it right, if you have a hard time selling your property, you may opt to auction off your property, that way, you are able to sell the property and although you may not get the price you desire but at least your property is no longer in your debt.

Many auctioneers have briefly mentioned that 2021 will have more auction properties in the market than compared to past years as some owners may be facing financial difficulties as the pandemic continues in Malaysia, however there are also people who will benefit from auctioned properties, such as property investors or even those young couples or young home buyers who wishes to purchase a property of their liking at an affordable price that they can pay off. 

During good times, a solid property at an attractive price in an auction will be snapped up within the first round of auction itself. We hope this article will be able to help you in your auction property journey!