Malema mansion auctioned for R5.9m

Posted On Friday, 10 May 2013 15:00 Published by eProp Commercial Property News
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Whether Julius Malema lost the property or not remains irrelevant for the property world what matters is that who ever bought Julius's house must know they have over capitalised and may never recover the monies even if they finished and resold it again.

Julius MalemaThe half-built mansion was sold for R5.9m to Norman Tloubatla, CEO of the company Magnified Designs. Auction house Bidders Choice was reportedly hoping to raise between R2,5m and R3m for the three-storey property.

According to Victor Moyo, Director at Sakhiwo Property Services, the house was over priced from the beginning when Malema paid R3.6 million a few years ago and still spent 1 million rands on demolition and rebuilding this amazing build. 

"Whether Julius Malema lost the property or not remains irrelevant for the property world what matters is that who ever bought Julius's house must know they have over capitalised and may never recover the monies even if they finished and resold it again. 

My professional view as an auctioneer and property specialist is that it is unrealistic and the motivation to spend so much on a house shell is just questionable to say the least" Moyo says.

Speculation in some circles is that a friend was rescuing another and the bid price had nothing to do with the market forces of property in South Africa today. 

Sakhiwo Property Services is a property consultancy with services ranging from property valuations, property management and property broking.

Last modified on Saturday, 31 May 2014 08:45

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