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Dedicated to providing finance for auction purchases
23.03.10
"I've been buying properties at auction since I was 18 and have built up a portfolio of 20. When I first started I had no experience of the building industry, but wanted to get into property buying and knew there were bargains to be had at auction.
"I buy property, do any work that's needed and then rent the houses out. Two weeks ago I bought a flat for £38,000 at a Manchester auction. The guide price was £50,000 and the flat next door to it recently went for £70,000. The flat will be ready to rent out within a month.
"My advice is to get finance in order before you go to the auction. I use Auction Finance Limited because I can tell them how much I need one day and have the money the next.
"Around one in three property sales fall through and these properties often end up at auction houses. The main reason for a sale falling through is when a survey finds that there are structural faults and the banks won't lend. Savvy buyers can do work on a property to fix the problems and still make a healthy profit.
"The main difference between buying through an agent and buying at auction is the speed of the transaction. At auction you need to complete and exchange in 28 days, whereas through an estate agent the whole process typically takes 8-10 weeks. The fact that a contract is formed on the fall of the hammer means that the buyer is legally obliged to sell to you and there is no danger of being gazumped.
"Auction catalogues come out around a month before a sale so you have plenty of time to have a look at a property you want to buy. If you like it, have a structural survey carried out. These can be arranged very quickly. From there, you need to get a legal pack which your solicitor should examine carefully to spot any issues.
"When you're in the auction room, set a budget and don't be tempted to go over it. Before you bid, find out what houses in the same area have sold for to make sure you're getting a good deal. I use Upmystreet.com to get this information.
"An auction is a great place for a first time buyer to get their foot on the ladder, there are thousands of bargains to be had, although you will need a good deposit saved up."
"I buy property, do any work that's needed and then rent the houses out. Two weeks ago I bought a flat for £38,000 at a Manchester auction. The guide price was £50,000 and the flat next door to it recently went for £70,000. The flat will be ready to rent out within a month.
"My advice is to get finance in order before you go to the auction. I use Auction Finance Limited because I can tell them how much I need one day and have the money the next.
"Around one in three property sales fall through and these properties often end up at auction houses. The main reason for a sale falling through is when a survey finds that there are structural faults and the banks won't lend. Savvy buyers can do work on a property to fix the problems and still make a healthy profit.
"The main difference between buying through an agent and buying at auction is the speed of the transaction. At auction you need to complete and exchange in 28 days, whereas through an estate agent the whole process typically takes 8-10 weeks. The fact that a contract is formed on the fall of the hammer means that the buyer is legally obliged to sell to you and there is no danger of being gazumped.
"Auction catalogues come out around a month before a sale so you have plenty of time to have a look at a property you want to buy. If you like it, have a structural survey carried out. These can be arranged very quickly. From there, you need to get a legal pack which your solicitor should examine carefully to spot any issues.
"When you're in the auction room, set a budget and don't be tempted to go over it. Before you bid, find out what houses in the same area have sold for to make sure you're getting a good deal. I use Upmystreet.com to get this information.
"An auction is a great place for a first time buyer to get their foot on the ladder, there are thousands of bargains to be had, although you will need a good deposit saved up."