Newbie investor keen for auction advice

by Readers Question

9:28 AM, 12th August 2014
About 4 years ago

Newbie investor keen for auction advice

Make Text Bigger
Newbie investor keen for auction advice

My husband and I are new to property investing. We are currently living in a 3 bed semi which we would like to rent out next year. But first we would like to invest in some property in auction, ideally for around £120k (cash buy plus £30k for other legal and repairs), then sell it on for some profit.  Newbie investor keen for auction advice

The only way we can do this is to release equity from our current house. We haven’t found any property in auction yet but we are keen on a freehold property rather than leasehold.

1. Any suggestions of what we should look out for?

2. Any pitfalls we should avoid?

Thanks

Rupal



Comments

Mark Alexander

9:29 AM, 12th August 2014
About 4 years ago

Hi Rupal

Making a profit by buying at auction isn't easy and certainly isn't a strategy that I would recommend to a cash strapped newbie.

What makes you think that you can make a success of this?
.

Rob

9:49 AM, 12th August 2014
About 4 years ago

Make sure you veiw the property first, dont buy blind. Also make sure your solicitor reads all the papework ie special conditions this is especially important if you did buy a leasehold flat, if you havnt read the paperwork then on completion you might be hit with a £10k bill to contribute towards the repair of the outside of the building for example. Or just sign up with all the local estate agents and say you want run down fixer uppers and buy them that way.

Rupal Shah-Sekhawat

9:55 AM, 12th August 2014
About 4 years ago

Reply to the comment left by "Mark Alexander" at "12/08/2014 - 09:29":

Its not a long term strategy, its a short term in order to raise enough capital for our next property. Why do you think its not a good strategy? Buying a Ok-ish property below market value and selling for little profit? I am a Part 1 Qualified architect with secure 9-5 job.

Thanks for your honest concern though and advise. I appreciate it.

Mark Alexander

10:07 AM, 12th August 2014
About 4 years ago

Reply to the comment left by "Rupal Shah-Sekhawat" at "12/08/2014 - 09:55":

The magic word there is architect. I was rather hoping that you would say something like that, surveyor would have been another good profession.

Clearly you understand how to check the fabric of a property and valuations based on your profession. Are you equally confident in terms of being able to read through the legal packs?

If so, go for it 🙂

Good luck.
.

Jan Martin

16:06 PM, 12th August 2014
About 4 years ago

Reply to the comment left by "Rupal Shah-Sekhawat" at "12/08/2014 - 09:55":

I feel that there is lots to weigh up . To start with it would be a really good idea to attend a few auctions . The selling prices can be very different to the initial guide . You will need to look for a property which needs some work otherwise it wont be worth you buying if your looking for quick profit. Sounds like you wont be working on the property yourself if you have a full time job .
I have just purchased a bungalow from auction which will sell for a good profit but only because we carry out the majority of works ourselves and of course properties are now going up in value . Will take around 6 months to complete .
I have found that auctions are not always the best places to find the best little deals
Got to do your homework . Wish you the best .


Leave Comments

Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.

Forgotten your password?

OR

BECOME A MEMBER

Shelter's website says Section 21 does not cause homelessness

The Landlords Union

Become a Member, it's FREE

Our mission is to facilitate the sharing of best practice amongst UK landlords, tenants and letting agents

Learn More