Archive for the ‘Auction properties’ Category

Diary of a UK Property Investor – www.hbfinvestments.co.uk

A third great way for property investors to source fantastic investment properties is through auction websites such as E.I.Group (EIG).  

EIG lists 1000’s of investment properties available at auctions located all round the UK.  It is simply impossible not to be able to use this site to pick up a bargain investment property exactly where you want to buy one!

The great thing about EIG is that you do not even have to go to the auctions to buy the properties!  You can use EIG to check for properties that did not sell at auctions and put in your offers post auction.  If your offer is accepted you will have the cash available to put down a 10% deposit and be in a confident position to pay the rest of the cash to complete within 28 days.

Before you pay over your 10% deposit you have to ensure that (i) if you are buying with a mortgage, that you have your ‘decision in principle’ in place already with a lender who will give you a mortgage offer within a week or two so you can complete within 28 days; (ii) you use an experienced auction solicitor and broker to ensure that the legal title is acceptable for mortgage lending and who will complete in the required timescales; and (iii) that you have had the property surveyed so it is structurally sound and in acceptable condition – you do not want any nasty surprises!

Many property investors I know use EIG to do 2 or 3 deals a month to source fantastic deals at about 35-40% discounts. AND they do all this from their armchairs! 

Source:  David Coughlin – HBF Investments

Prime residential property prices in central London have increased for the second month in a row with values rising by 1.6%, four times the rate of growth seen in April.

On an annual basis prices are now down 20.1% and down 22% since their peak in March 2008, according to the Knight Frank Prime Central London Index May 2009.

The recovery in prices has been led by the sub £1 million property sector, where prices have now risen 2.7% since March this year, the index shows. The £10 million plus sector has seen the slowest to see any recovery with prices only 0.8% higher over the same period

The strongest performing locations are Mayfair and Marylebone where prices have risen by 2.9% and 2.7% respectively.

‘There has been a steadily improving picture in the central London market in recent months with buyers growing in number and deals beginning to shift upwards,’ said Liam Bailey, head of residential research, Knight Frank.

‘There is no question that purely in terms of sales activity the central London market is unrecognisable from where it was six months ago. The falls in capital values, cheap debt, overseas investors with US$ and Euros have encouraged buyers back into the market, with many just keen to get on with their lives having put all financial decisions on hold for the duration of 2009,’ he added.

The majority of the sales are in the £1 million to £3 million price range. These include two bedroom flats to medium sized family houses with buyers seeking quality and the best locations, the index shows.

Even the top end of the market is beginning to get busier with Russians that have managed to retain their wealth buying in the best locations as they are keen to place their cash in the UK.

‘Supply is still thin across the price ranges. This is particularly acute in the £1 to £2 million range causing great frustration for overseas investors who think they should be able to pick up bargains,’ explained Bailey.

‘The net result of this imbalance is that gazumping is back with the sealed bid system being used again for the first time in 18 months. All this has put a floor under prices, indeed for the best locations prices are up by almost 3% over the last two months,’ he added.

Source – property wire

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