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  • FIRST POST
    • Enm1
    • By Enm1 19th Oct 19, 9:14 PM
    • 15Posts
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    Enm1
    Help please - what to set as limit at auction?
    • #1
    • 19th Oct 19, 9:14 PM
    Help please - what to set as limit at auction? 19th Oct 19 at 9:14 PM
    We would value the opinion of the experienced posters on our dilemma...

    We want to buy a studio flat in a specific complex due to location/safety/cost and there are 2 on the market. One is for sale by a traditional Estate Agent for 280000 (Rightmove property 73388560) and the other up for auction with a guide of 200000 (Rightmove property 85454363). We've seen both and they both will need updating and redecoration.

    What should our limit be on auction day? We're thinking the reserve price is about 220000 (10% above the guide) and would love to get it for the reserve to allow more cash for refurbishment. Two other similar studios in the same complex are currently under offer / sold according to Rightmove and the last sale was for 275000 in January.

    We are able to buy without mortgage and have attended an auction to see how the process works and know we will have to complete within 4 weeks of the auction etc.

    Any thoughts on our plan? We're a bit concerned about Brexit and the housing market but want to buy the flat for our daughter who just started at University in London and will need to move out of her halls of residence next summer, so we could delay the purchase until the New Year?


    PS sorry can't post links as I've just signed up having been a MSE observer for many years
    Last edited by Enm1; 19-10-2019 at 10:06 PM. Reason: removing our upper limit price as advised
Page 1
    • mark88man
    • By mark88man 19th Oct 19, 9:52 PM
    • 4,484 Posts
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    mark88man
    • #2
    • 19th Oct 19, 9:52 PM
    • #2
    • 19th Oct 19, 9:52 PM
    I think I Wouldn't be putting specific amounts here, although I guess the odds of someone interested in the house reading this are slim. I think you should seek general auction tactics - rather than specific numbers for this house. Try watching homes under the hammer that should help you - remember the legal pack and the extra costs though :-)
    Things happen for a reason. Often because we are stupid & make bad decisions.
    Weight/Health - Fluctuating - better than I was worse than I should be
    Mid 19: CC:15K@0% - Car Loan:9K@2.8% - Mort:124K@2.1% = 148K - down 8k year to date
    Decrease in Total Debt 2016:13.4K 2017:8.3K 2018:20K

    • Enm1
    • By Enm1 19th Oct 19, 10:11 PM
    • 15 Posts
    • 6 Thanks
    Enm1
    • #3
    • 19th Oct 19, 10:11 PM
    • #3
    • 19th Oct 19, 10:11 PM
    Thank you mark88man. We've read the legal pack and figured the auction costs into our price limit. Our solicitor is also looking over it at the moment.

    Just need to be disciplined on the auction day and not get carried away as we attend an auction recently and there was quite a frenzy and everyone could feel the tension in the room for some properties. Going to try and get to another auction or two to try and get used to the atmosphere (and watch all the reruns of Homes under the Hammer over the weekend )
    • diggingdude
    • By diggingdude 19th Oct 19, 10:45 PM
    • 1,364 Posts
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    diggingdude
    • #4
    • 19th Oct 19, 10:45 PM
    • #4
    • 19th Oct 19, 10:45 PM
    Just be careful not to get carried away in the moment. Another flat will be along soon if you miss this one
    House owner as of 27.3.2019
    • FreeBear
    • By FreeBear 20th Oct 19, 12:58 AM
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    FreeBear
    • #5
    • 20th Oct 19, 12:58 AM
    • #5
    • 20th Oct 19, 12:58 AM
    Just be careful not to get carried away in the moment.
    Originally posted by diggingdude

    If the auction house will allow it, entering a proxy (or postal) bid would save getting caught up in a bidding frenzy.
    Her courage will change the world.

    Treasure the moments that you have. Savour them for as long as you can for they will never come back again.
    • Tom99
    • By Tom99 20th Oct 19, 4:05 AM
    • 5,093 Posts
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    Tom99
    • #6
    • 20th Oct 19, 4:05 AM
    • #6
    • 20th Oct 19, 4:05 AM
    Whichever of the two flats you go for check out the service charge and any upcoming repairs as the block looks like a potential money pit.
    • deannatrois
    • By deannatrois 20th Oct 19, 4:24 AM
    • 6,463 Posts
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    deannatrois
    • #7
    • 20th Oct 19, 4:24 AM
    • #7
    • 20th Oct 19, 4:24 AM
    And funding for any major repairs by the freeholder (big enough sink fund etc). There is usually a reason why properties are offered at auction. Look for these reasons.
    • getmore4less
    • By getmore4less 20th Oct 19, 9:01 AM
    • 37,992 Posts
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    getmore4less
    • #8
    • 20th Oct 19, 9:01 AM
    • #8
    • 20th Oct 19, 9:01 AM
    First one says under offer
    • AdrianC
    • By AdrianC 20th Oct 19, 9:28 AM
    • 26,334 Posts
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    AdrianC
    • #9
    • 20th Oct 19, 9:28 AM
    • #9
    • 20th Oct 19, 9:28 AM
    It's very simple.

    Set your upper limiit to a price you know you can afford and you know you can lay your hands on within 28 days - and which you believe it's worth in the condition you see.

    Then STICK TO IT. Like superglue. If the bidding goes even 1 above, get your hand down and sit on it until it's numb.
    • D.L
    • By D.L 20th Oct 19, 9:55 AM
    • 12 Posts
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    D.L
    Just something to think about - is this solely for your daughter? After living in halls, most students prefer to live with a few friends rather than alone.
    • kinger101
    • By kinger101 20th Oct 19, 10:15 AM
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    kinger101
    Just something to think about - is this solely for your daughter? After living in halls, most students prefer to live with a few friends rather than alone.
    Originally posted by D.L
    It's not necessary a case of preference. Most students have no option but to share ask one bedroom properties are out of their budget.
    • Simby
    • By Simby 20th Oct 19, 10:27 AM
    • 212 Posts
    • 198 Thanks
    Simby
    If you are worried about getting carried away at the auction, you could employ a representative to bid for you.
    • Cakeguts
    • By Cakeguts 20th Oct 19, 10:27 AM
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    Cakeguts
    The first one says under offer in the details. What worries me more though is that they are near London South Bank University which is a really terrible university. It is one of the 11 or so duds in London that could do with being closed. If your daughter is at South Bank then buying a flat for her to live in is a really bad idea because she is going to need practice at paying rent in London because of the likely job situation after a degree from somewhere like South Bank University.



    If she isn't studying there then she would be better off living nearer to the university she is studying at so that she gets to see her friends and isn't stuck in a flat somewhere on her own.
    • davidmcn
    • By davidmcn 20th Oct 19, 10:29 AM
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    davidmcn
    It's not necessary a case of preference. Most students have no option but to share ask one bedroom properties are out of their budget.
    Originally posted by kinger101
    Yes, it's more "students will put up with sharing if mummy and daddy don't have a spare quarter million in cash for a London residence just for them".
    • Cakeguts
    • By Cakeguts 20th Oct 19, 10:45 AM
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    Cakeguts
    It's not necessary a case of preference. Most students have no option but to share ask one bedroom properties are out of their budget.
    Originally posted by kinger101

    Yes but in this case the parents have the option of helping out a bit with the rent. I live in London and there are around 11 universities that offer the level of degree that is so low in standard that the students who get them are never going to earn enough to live in London. Some apprenticeships pay more for jobs than you are going to get with these degrees. The unfortunate problem is that they are in the most expensive part of the country so learning how much it costs to live in London is part of the education.
    • G_M
    • By G_M 20th Oct 19, 10:49 AM
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    G_M
    University can be a lonely place for some people, and sharing is part of the experience, as well as resolving that potential loneliness problem. but if she is naturally gregarious and has lots of friends it may not be a problem.


    As for the auction, the big question is why is the seller selling that way? Just in a hurry to sell? Or is there a problem with the flat,or the block?
    • kinger101
    • By kinger101 20th Oct 19, 12:44 PM
    • 4,869 Posts
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    kinger101
    The first one says under offer in the details. What worries me more though is that they are near London South Bank University which is a really terrible university. It is one of the 11 or so duds in London that could do with being closed. If your daughter is at South Bank then buying a flat for her to live in is a really bad idea because she is going to need practice at paying rent in London because of the likely job situation after a degree from somewhere like South Bank University.

    If she isn't studying there then she would be better off living nearer to the university she is studying at so that she gets to see her friends and isn't stuck in a flat somewhere on her own.
    Originally posted by Cakeguts
    It's not Oxford or even Russell group but....

    https://www.lsbu.ac.uk/about-us/news/university-graduate-employment-2019

    The ones that tend to struggle with graduate employment are probably those who've done non-vocational courses (e.g., history) at a not-so-prestigious university, and engaged in no extra-curricular activities.
    • Cakeguts
    • By Cakeguts 20th Oct 19, 1:53 PM
    • 6,882 Posts
    • 11,025 Thanks
    Cakeguts
    It's not Oxford or even Russell group but....

    https://www.lsbu.ac.uk/about-us/news/university-graduate-employment-2019

    The ones that tend to struggle with graduate employment are probably those who've done non-vocational courses (e.g., history) at a not-so-prestigious university, and engaged in no extra-curricular activities.
    Originally posted by kinger101

    That doesn't mean anything. The jobs could all be in bars and restaurants paying minimum wage. The problem in London isn't getting a job. There are lots of jobs but not all of them pay enough for people to live there with a decent life style especially single people. If you go to a top university and get a really good degree you are likely to get the kind of job that pays enough for you to live in London. This university is likely to get you the kind of job that you can only do if you continue to live with your parents. The problem I have with all of the 11 duds is that they tend to get students from other parts of the country who have no concept of just how expensive it is to live in London and of course because this kind of university is the best they can do they often don't do any research beforehand to see how much it will cost and what sort of employment they can get.



    If someone who goes to somewhere like this university went to a simlar standard one in a cheaper part of the country they wouldn't have so much of a problem because they could network in that cheaper area and of course the minimum wage jobs have more spending power outside London. You just have to put yourself in the situation of having got a degree from somewhere like this when your parents don't live locally. You are going to have to move back home to your parents house and then try to get a job in the area of the country that you came from where the local students have all done their networking.



    It just isn't worth attending these universities unless you live locally and even then they would do just as well in minimum wage jobs if they were technical colleges and free to local people. There is no advantage to anyone except the staff in them being universities.
    • kinger101
    • By kinger101 20th Oct 19, 2:24 PM
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    kinger101
    That doesn't mean anything. The jobs could all be in bars and restaurants paying minimum wage. The problem in London isn't getting a job.
    Originally posted by Cakeguts
    I've not dug into the underlying figures but the article does state:

    "LSBU wins this award, having jumped into the top four for graduate prospects nationally, with nearly 89 per cent of graduates in professional graduate-level jobs or further study six months after graduation."

    "Median LSBU graduate salaries start at 26,000, which is among the highest in the country."

    I suspect they've not standardized this data by type of entrant (mature, postgraduate, international) but the fact is while it's not somewhere the most academically able might choose, it does offer a high proportion of vocational courses which will improve the prospects of those undertaking the course. This is what is likely being reflected in the stats.

    Not everyone can get 3 or 4 good A-levels, but it doesn't mean there shouldn't be opportunities for them to continue education and gain skills valued by employers.
    Last edited by kinger101; 20-10-2019 at 2:27 PM.
    • mark88man
    • By mark88man 20th Oct 19, 2:35 PM
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    mark88man
    I suspect there is a teacher/school perspective here, and their capability to play ranking table games stressing that its important to get a number of places up the university ranking ladder (don't choose no 100 in the ranking ladder when you could get to #96) is laughable to those who actually employ undergraduates.

    And is usually buried in preconceptions from when they themselves were at University and not evidence based on current results.

    So I have a lot of respect for teachers,but not on this topic
    Things happen for a reason. Often because we are stupid & make bad decisions.
    Weight/Health - Fluctuating - better than I was worse than I should be
    Mid 19: CC:15K@0% - Car Loan:9K@2.8% - Mort:124K@2.1% = 148K - down 8k year to date
    Decrease in Total Debt 2016:13.4K 2017:8.3K 2018:20K

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