Johannesburg apartment buildings on sale for as low as R500k … but there is a catch

Two apartment blocks in the Johannesburg suburb of Bellevue are to be auctioned off at bargain prices. Located at 98 and 102 Becker Street in Bellevue, respectively, Queens Castle and Prince Castle will soon be auctioned.

PROMOTIONS HAVE A PRICE

These apartment buildings will go up for auction on November 4, with bids starting at half a million rand each. Buying the buildings at this price will be a godsend, but both buildings are fully occupied by non-paying tenants …

New landlords will need to develop a plan to get illegal tenants occupying buildings to pay or vacate the premises.

The tenants of the buildings live in deplorable conditions since no maintenance or maintenance is carried out by the unofficial owners who pocket the rental income without worrying about maintenance.

JOBURG TAKE-OFF BUILDINGS

Johannesburg‘s city center is inundated with hijacked buildings that have been overtaken by unscrupulous slum lords who run these places through violence and intimidation. This phenomenon is common in central Johannesburg, where many apartment buildings in Hillbrow, Yeoville, Berea and Bellevue have fallen victim to hijackers.

According to Business intern, there were over 500 ‘problem buildings’ in Johannesburg in 2018. Many of these are classified as hijacked buildings, where slum owners have imposed themselves as owners of a property and collect the rent and act as legal persons.

OBSTACLES FOR OWNERS

The owners of these buildings face legal battles as the official owners of the buildings – when they take on the hijackers (slumlords) and evict the illegal tenants.

Tenants pay rental fees to slum owners at an extremely reduced rate, while municipal bills, taxes and utilities continue to be billed to legal owners.

THE REVERSE

This is a good opportunity for buyers who have the skills and abilities to face the challenges that owning such buildings involves.

Business Insider reports that property prices in the area are on the rise, with one-bedroom apartments in the area currently selling for as low as R200,000 each. The two buildings house 10 apartments each and have a mix of single and double rooms in each.

THE WRONG SIDE

The eviction of the occupants will be at the expense of the purchaser but all unpaid municipal accounts must be paid by the vendor.

Tenants, with or without valid leases, are protected, to some extent, by the Constitution and the Prevention of Unlawful Evictions and Illegal Occupation of Land Act (19 of 1998), so evictions can occur. prove difficult.

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