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Heading to auction today... any tips?
Comments
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Hey guys,
All went well - they're ended up being 4 bidders on the property. I waited till it was down to one and ended up winning the auction and being £3k over guide price.
Fairly happy since the £58k was £2k less than was paid for it in 2000, £27k below the 10 year average for the street and has tenants in who pay £475/month.
Obviously need to wait and see how it all goes over the next few months but seems fairly straight forward so far.... I'm a fairly pessimistic person so we'll have to see how that goes.
Thanks for everyone's help earlier0 -
Well done, you buying it as a BTL then?Pawpurrs x
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Hey guys,
All went well - they're ended up being 4 bidders on the property. I waited till it was down to one and ended up winning the auction and being £3k over guide price.
Fairly happy since the £58k was £2k less than was paid for it in 2000, £27k below the 10 year average for the street and has tenants in who pay £475/month.
Obviously need to wait and see how it all goes over the next few months but seems fairly straight forward so far.... I'm a fairly pessimistic person so we'll have to see how that goes.
Thanks for everyone's help earlier
Sounds great. Well done!Everything that is supposed to be in heaven is already here on earth.
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Well done, you buying it as a BTL then?
yep - so mortgage on it should come in somewhere between £200-220 depending on what we put down and rate etc.. so a fair amount of headroom for voids etc.. and hopefully a bit of capital in the process.
.... As I say though lets see how it all pans out!0 -
Well done. A 10% yield is my rule of thumb for what you really need to make BTL worthwhile.No reliance should be placed on the above! Absolutely none, do you hear?0
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If you are buying it with tenants, check whether the deposit is included in the price ie will you be liable to return the tenant deposit at the end of the tenancy.
Also check the tenancy agreement. There was a thread on here a while ago about an auction tenanted property where the rent wasn't as high as the buyer had been led to believe. the tenants had never seen the tenancy agreement that was shown prior to the auction.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
yep - so mortgage on it should come in somewhere between £200-220 depending on what we put down and rate etc.. so a fair amount of headroom for voids etc.. and hopefully a bit of capital in the process.
.... As I say though lets see how it all pans out!
So you haven't actually got your mortgage in place prior to bidding?0 -
Thrugelmir wrote: »So you haven't actually got your mortgage in place prior to bidding?
They needed a purchase price before they could move the process forward and initiate their survey etc..
Have 28 days to complete and ultimate worst cas scenario could pay cash.
Is there a reason for your question?0 -
They needed a purchase price before they could move the process forward and initiate their survey etc..
Have 28 days to complete and ultimate worst cas scenario could pay cash.
Is there a reason for your question?
Only that you can get a MIP. With interest rates moving rapidly if the property is to be an investment will have a bearing on return.
When buying at auction a contigency fund shoud be in hand for the unexpected. You would know if the property was unmortagable at he outset.0 -
Thrugelmir wrote: »Only that you can get a MIP. With interest rates moving rapidly if the property is to be an investment will have a bearing on return.
When buying at auction a contigency fund shoud be in hand for the unexpected. You would know if the property was unmortagable at he outset.
Exactly.
That's why I have the cash to hand to pay for it outright in a worst case scenario.0
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