advice for buying propery from an auction?
17 June 2005, 05:19 PM
#1
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advice for buying propery from an auction?
anyone done it and how do you go about doing it... funding?
been told you need to pay 10% deposit on the day... how long you get to then finance for the rest of it?
I'm thinking about an investment property.... can get a Buy to Let mortgage ok, have decent deposit... but would still look at borrowing 50%-70% depending how cheap i can pick something up.
advice please
Phil
all SMART cars are fast... ish
been told you need to pay 10% deposit on the day... how long you get to then finance for the rest of it?
I'm thinking about an investment property.... can get a Buy to Let mortgage ok, have decent deposit... but would still look at borrowing 50%-70% depending how cheap i can pick something up.
advice please
Phil
all SMART cars are fast... ish
17 June 2005, 05:26 PM
#2
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Phil - 10% deposit by cheque, handed to the auctioneer on the day. Completion one month (or 28 days) thereafter.
Inspect all the legal documents, including copy title deeds and local search before you bid, as the hammer falling signifies a binding agreement.
Make sure that your finance for the balance is available and that you are aware of the risks of buying - ie. do you know what you're taking on regarding the state & condition of the property.
Essential to get a surveyor or tame builder to look at the property, to be aware of the potential pitfalls.
Cheers, HB.
Inspect all the legal documents, including copy title deeds and local search before you bid, as the hammer falling signifies a binding agreement.
Make sure that your finance for the balance is available and that you are aware of the risks of buying - ie. do you know what you're taking on regarding the state & condition of the property.
Essential to get a surveyor or tame builder to look at the property, to be aware of the potential pitfalls.
Cheers, HB.
17 June 2005, 05:28 PM
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Phil
You do indeed have to pay 10% on the day (sometimes upto 20%), and then usually settle the rest within 7-10 days.. good way of buying property, except when 20 people want the same propery and the price goes up to over market value.. remember the age old advice though, do your research, set yourself a top figure and DONT go over it..
good luck
J
You do indeed have to pay 10% on the day (sometimes upto 20%), and then usually settle the rest within 7-10 days.. good way of buying property, except when 20 people want the same propery and the price goes up to over market value.. remember the age old advice though, do your research, set yourself a top figure and DONT go over it..
good luck
J
17 June 2005, 05:29 PM
#4
Sorry to be blunt, but are you absolutely loony?
Prices have stagnated and are not going to go up for a long, long time. In fact, prices in London etc have already dropped considerably (10% falls since end of 2004). Year on year figures will be negative within two-three months after the early 2004 gains have fallen out of the statistics.
YOY going negative will have a huge impact on sentiment, and then before you know it, prices keep falling faster and faster.
Stick the money in a bank and earn some interest, you'll most likely make more than from a house.
Transaction volumes are down, and there are no FTB buyers. Don't do it :-)
Prices have stagnated and are not going to go up for a long, long time. In fact, prices in London etc have already dropped considerably (10% falls since end of 2004). Year on year figures will be negative within two-three months after the early 2004 gains have fallen out of the statistics.
YOY going negative will have a huge impact on sentiment, and then before you know it, prices keep falling faster and faster.
Stick the money in a bank and earn some interest, you'll most likely make more than from a house.
Transaction volumes are down, and there are no FTB buyers. Don't do it :-)
17 June 2005, 05:31 PM
#5
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Thread Starter
don't want to pay more than £80k for two bed terrace if i can help it. but thought at auction might get something at £40k !!!
something like these.. that will rent out ok at about £350/400 pcm
http://www.rightmove.co.uk/search.rs...mit_dosearch=1
Phil
something like these.. that will rent out ok at about £350/400 pcm
http://www.rightmove.co.uk/search.rs...mit_dosearch=1
Phil
17 June 2005, 05:32 PM
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Originally Posted by Henrik
Sorry to be blunt, but are you absolutely loony?
Prices have stagnated and are not going to go up for a long, long time. In fact, prices in London etc have already dropped considerably (10% falls since end of 2004). Year on year figures will be negative within two-three months after the early 2004 gains have fallen out of the statistics.
YOY going negative will have a huge impact on sentiment, and then before you know it, prices keep falling faster and faster.
Stick the money in a bank and earn some interest, you'll most likely make more than from a house.
Transaction volumes are down, and there are no FTB buyers. Don't do it :-)
Prices have stagnated and are not going to go up for a long, long time. In fact, prices in London etc have already dropped considerably (10% falls since end of 2004). Year on year figures will be negative within two-three months after the early 2004 gains have fallen out of the statistics.
YOY going negative will have a huge impact on sentiment, and then before you know it, prices keep falling faster and faster.
Stick the money in a bank and earn some interest, you'll most likely make more than from a house.
Transaction volumes are down, and there are no FTB buyers. Don't do it :-)
J
17 June 2005, 05:35 PM
#7
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Thread Starter
buyers market at the mo... big savings if your coming in as investor!!
been offered luxury 2 bed appartments in Nottm... Was £179k... now £155k!!
means you can get it cheaper than that!
good time to buy. don't forget Nottm last year had an average 27% price increase while london was flat as a pan cake.
its slowed down up here but stuff is still selling... just a bit cheaper
Phil
been offered luxury 2 bed appartments in Nottm... Was £179k... now £155k!!
means you can get it cheaper than that!
good time to buy. don't forget Nottm last year had an average 27% price increase while london was flat as a pan cake.
its slowed down up here but stuff is still selling... just a bit cheaper
Phil
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17 June 2005, 05:37 PM
#8
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btw... think i'll put an EVO on hold and put the money in property still... better return after 4yrs lol
lol
17 June 2005, 05:39 PM
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Originally Posted by scoobyjimbo
Phil
You do indeed have to pay 10% on the day (sometimes upto 20%), and then usually settle the rest within 7-10 days..
You do indeed have to pay 10% on the day (sometimes upto 20%), and then usually settle the rest within 7-10 days..
Any variations are notified to bidders prior to exchange.
17 June 2005, 08:36 PM
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Originally Posted by Harry_Boy
Standard Law Soc T&Cs - 10% deposit, 4 weeks between exchange and completion.
Any variations are notified to bidders prior to exchange.
Any variations are notified to bidders prior to exchange.
J
17 June 2005, 09:54 PM
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salsa-king, without repeating what Harry Boy has said just do your homework on a property and get your solicitor to look at the legal pack that will be available on the property BEFORE you bid.
18 June 2005, 10:05 AM
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The problem I found with purchasing at auction was that you could end up spending alot of money without ever getting anything
ie you pay for survey and solicitor to check legals. Then the price goes above your limit and you walk away with nothing. This initial cost also means going there with a few properties to bid on is difficult. Obviosly if you are inthe building/legal game these expenses can be kept down.
Also be VERY careful. Even after checking legals etc things can be missed.People often use auctions to sell properties with ISSUES. I have done this myself. I was not legally required to offer infomation on these issues so I did'nt. Made a healthy profit, felt a bit sneaky though. Saying that thats the name of the game at auctions
Make sure you have borrowing in principle in place. 1 minute beyond the 28 days and you potentially lose your 10%. Remember that if the lender finds some 'issue' they d'ont like with the prop they w'ont lend so you'll lose your 10%
Good luck
ie you pay for survey and solicitor to check legals. Then the price goes above your limit and you walk away with nothing. This initial cost also means going there with a few properties to bid on is difficult. Obviosly if you are inthe building/legal game these expenses can be kept down.
Also be VERY careful. Even after checking legals etc things can be missed.People often use auctions to sell properties with ISSUES. I have done this myself. I was not legally required to offer infomation on these issues so I did'nt. Made a healthy profit, felt a bit sneaky though. Saying that thats the name of the game at auctions
Make sure you have borrowing in principle in place. 1 minute beyond the 28 days and you potentially lose your 10%. Remember that if the lender finds some 'issue' they d'ont like with the prop they w'ont lend so you'll lose your 10%
Good luck
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