Auction

chris83_2

Hi

Sorry i am new to this messageboard and so i don't know if this has been asked before. I am looking to buy my first property after i leave university in a few months. I have been offered a job in London and would like to buy a property at auction and do it up whilst i am living there. I thought this would be a good way of saving money and a good way to get on the property ladder in london.

What do people think? Am i being very naive? I do not have much idea of what to expect or what the market is like and of all the costs.

If people could give me some advice i would very much appreciate it.

Many Thanks

Chris

Doozergirl

This list updates with new auctions each month.

http://www.property-investor-news.com/auctions.htm

There's nothing wrong with your idea, you just need to research. Go to a few auctions as an observer and note down what the properties sell for in your catalogue. you're also going to be in a better position if you can view these properties with someone who understands buildings and knows what to look out for.

it's a fact that most auction properties are not a bargain; you need to have vision and imagination to find the best ones, especially if you are going to need a mortgage quickly in order to compete on time. They will generally not be the ones with the lowest guide prices as those are virtually guaranteed to get most interest and sell for something silly, even if they have structural issues, bizarrely. View as many properties as you can for comparison.

Jay1b

I looked into this a few weeks/months back... Its really not worth it. You need to spend £500 on the house before you can even put a bid in. You need to get a survey done for the mortgage company, then you may not even win the auction. The cost could mount up very fast.

Woby_Tide

you ask if you are being naive yet you haven't actually even looked at the markets you intend to buy in or the prospective costs. Unless you do it thoroughly and quickly I'd say yes.

Also given you haven't started work yet have you accounted for deposits/solicitors/stamp duty etc. that will all be aside from any mortgage you take out?

dander

You won't neccessarily get a property at auction much cheaper than on the open market. Sometimes the prices go spiralling up in the heat of the moment. And the guide prices are usually a fair bit below what things will really go for. And you need to be very careful to check the condition of the properties.

worriedfirsttimebuyer

Try and catch BBC1's Homes Under The Hammer, on weekday mornings. I've been watching whilst on half term and learning all about auctions etc.

Jay1b

Yes a TV program is just like real-life. Anyway, i'm just about to get beamed to Austrailia for a night out....

Good Day...

Doozergirl

Jay1b wrote:

Yes a TV program is just like real-life. Anyway, i'm just about to get beamed to Austrailia for a night out....

Good Day...

You shouldn't be facetious. I'll defend the comment about Homes Under the Hammer; as television programs go, it's pretty factual and will give a complete novice some insight into how the auction process works.

You should consider whether you come up with the best considered answers before you criticise other's comments.

theGrinch

you are likely to get that dream property at that dream price if you use as many sources as possible to procure it! Auctions, estate agents, networking, the corner shop, the postman etc.

but before all this you need to get your deposit ready, select a solicitor, get a mortgage offer and a clear vision of what you can afford and where. write down on one side of A4 what you want and visit all the local agents.

NB you can still get bargains at auction, but these tend to be spotted by professionals (developers) who know their planning laws and potential, but nevertheless, even they have to attend many lots at many auctions to find that gem.

good luck!