I am seeing a large of number of properties are coming for auction by the bank. What happens is that people go for loan to buy properties when they are earning well. But once the high earning stops or they don't earn much they can't pay the EMI. And because of that people lose their house, if they can't pay the EMI for 3 months, which I talked in my last post.
PC: Pixabay.com
Now with the layoffs happening everywhere, people are not able to pay the EMIs. Along with that they have to take lower salary and because of that they can't manage the EMI and expense. And that's why the auction properties are rising. The bank tries to recover the cost of their loan by selling the properties. These properties are usually on the lower side than the market rate. And that's why people usually buy it, the bank gets their money and the original owner loses everything.
And that's why having more than 30% of your salary as EMI is bad. Because if you get the salary cut, you can't pay the EMI and then forcefully you have to sell your house. So now if you are thinking of buying house, you cab check the auctioned properties because they are usually less pricy than the market. The bank want to recover the costs and they will try to sell for the lowest price possible and you can get the property for the low price.
And since it's from the Bank, the property usually will be having clear title. So you can buy those. And these auctioned properties are on the rise, might be if you are lucky you can get good properties for very low price.
