Do You Ever Buy At Public Trustee Auctions?

Published: Aug. 13, 2017, 11 p.m.

b"What are public trustee options? Do you ever buy these properties and what are some of the pitfalls?\\n\\n\\n\\nPublic trustee auctions are a way to purchase property off the government and the great thing about buying at public trustee auctions is that the property has to sell on the day.\\n\\n\\n\\nWhen the property goes to the public trustee it is usually because it's a mortgagee repossession, it's a deceased estate with no known family members in the country or no family members that want to be involved in seeing the property sell for a premium price point.\\n\\n\\n\\nYou may also have properties at public trustee options that have been through fires and are extremely difficult to sell. You could also have properties with major termite or pest infestations or damage or other issues along those lines.\\n\\n\\n\\nWhen purchasing from a public trustee they often won't give you any indication of price. They will just take the highest price from the day, but even still this is often much lower than the general market value of the property.\\n\\n\\n\\nIt's a good idea to get a building and pest inspection done (at your own cost) prior to the auction. Because when you're buying at auction you don't get to set those exit clauses in the contract. Because it's a public trustee auction they will not provide those reports to you, so you need to source them yourself.\\n\\n\\n\\nYou should alway be very thorough in your due diligence before considering buying a property from a public trustee auction. But having said that sometimes the properties can be incredible buying opportunities.\\n\\n\\n\\nYou should also be careful and make sure you have your finances in order before the day so that you can confidently close on auction terms.\\n\\n\\n\\nEnsure you've completed all your important searches such a flood, bush fire searches, easements on the property as well as checking where all the connection points are, sewer lines and those sorts of things.\\n\\n\\n\\nYou want to be very thorough before you even consider buying something from a public trustee auction. They can be epic buying opportunities but doing your due diligence and having all your eggs lined up before auction day is really important.\\n\\n\\n\\nHow Do You Find Out About Public Trustee Auctions?\\n\\n\\n\\n\\n\\n\\n\\nIn order to find about about public trustee auctions their are websites that you can subscribe to and (for a fee) they'll send you the details of public trustee auctions that come up.\\n\\n\\n\\nEach state in Australia also has public trustee websites and they list properties that they have coming up so you can see what is available.\\n\\n\\n\\nThen it comes down to doing your research at a suburb level. Often the public trustee or state government will identify one agent in the area to work with for a period of time.\\n\\n\\n\\nThey will often work with one agent for 12 months to 2 years and it's about identifying who is selling those types of properties in that area and building a relationship with them so you can get access to the public trustee properties.\\n\\n\\n\\nWhile those agents aren't meant to give anyone an unfair advantage if you've got a good relationship with the selling agent then that can often help you to get the leg up and win the property on the day, or at least go into the auction more informed.\\n\\n\\n\\nAre There Horror Stories For Public Trustee Auctions?\\n\\n\\n\\n\\n\\n\\n\\nWhen you are purchasing a property at a public trustee auction you have to remember that these are auction terms.\\n\\n\\n\\nThis means if your finance falls over or you can't complete the purchase for one reason or another chances are extremely high that you will lose your deposit.\\n\\n\\n\\nThis is why it's so important to do your due diligence beforehand and have your finances in order before making an offer at the auction.\\n\\n\\n\\nWhile I don't know of any horror stories in particular I can certainly imagine that people have been burned by public trustee properties.\\n\\n\\n\\nYou are buying the property in its current condition and form. You don't really have any legs to stand on liability-wise if you find out the property is in a..."