1. Use the services of an expert company

If you’ve never bought a property at auction before and want to ensure you get the best deal, with no hidden costs, then it’s well worth using the services of an expert company, like HBF Investments. They’ll hold your hand throughout the process, doing all the hard work for you and ensuring you get the property you want, at the price you can afford.

2. Get finance arranged before the auction

One of the important aspects of buying property at auction, as opposed to through an estate agent or seller, is that you’ll need to get your finance properly sorted out in advance. If you don’t have the money available to pay for the property, then you could end up being fined.

3. Stick to your auction property budget

It’s beneficial to go to a property auction with a clear idea in your mind of exactly how much your budget is. If you want to have a bit of leeway, in case bidding is fierce, then set yourself a strict upper limit. When a bidding war erupts, it’s all too easy to get carried away with bidding, then regret the price you’ve paid later. If your ultimate aim is to make money on your property investment, then getting the right price is essential.

4. Do your research before the property auction

It’s essential to thoroughly do your research before you attend the property auction. That means checking out the properties you’re interested in by reading the particulars, visiting the building, checking the small print and legal issues so that you know exactly what is, and isn’t, on offer.

All too often people make the mistake of not researching a property, then bidding on what seems like a good lot, only to discover later that it’s not what they thought.

• All mod cons – all modern conveniences, used to refer to the appliances in a rental property, such as the cooker, washing machine, fridge and freezer. This can vary though, so you may need to provide more details of exactly what you mean.
• Apt – short for apartment
• D/g – short for double glazing.
• Exc – means the fee is exclusive of bills
• Fully/furn – means the property is fully furnished, with beds and other furniture.
• FGCH or GCH – the property has full gas central heating or gas central heating.
• Inc – the property is inclusive of bills.
• Nr stn – the property is located near the station.
• N/S prof – a non-smoking professional tenant is preferred.
• Pcm – used with a price, this refers to the rent per calendar month,
• PK – parking is available.
• Pw – used with a price, this refers to the rent per week.
• Pt/furn – the property is partly furnished with a bed or other furniture.
• U/f – the property is unfurnished, so a tenant will need to supply their own furniture.

Whilst abbreviations can be really useful to save you room and money when writing an ad, it’s a good idea to use them in moderation. If there are too many abbreviations included, it may take away the first glance meaning of the ad and make it more difficult for people to translate and read. As you want to grab attention for the right reasons, getting the balance right is crucial.

To start things off, we’re going to begin by looking at the issue of cost, something that’s a major factor in the purchase of properties for many investors.

Old Build

Pros – With old build properties, one of the major attractions is that there’s often more bargaining power available in terms of cost, especially in the current economic climate. In the case of below market value (BMV) properties in particular, it’s possible to pick up some great property investment bargains. Older properties also tend to be bigger in size, so you get better value for money.

Cons – You do have to know where to look to get the best bargains. There will always be some old build homes in desirable locations that hold their value and can’t be bought for a good deal. Some older properties will have suffered a lot of wear and tear, or may need updating. If it takes time, then you could lose valuable time and money before you can get a tenant in.

New Build

Pros – If you’re purchasing a new build property, it’s brand new and you won’t need to spend money on doing it up for rental. Plus, extra incentives are also often available, such as brand new appliances or the chance to choose how the interior is decorated, which can all help with your costs.

Cons – When you buy a brand new property, you’re often paying above the odds for it. Also, if you’re going to use it for rental purposes, you need to be able to make a decent profit from renting it out, especially if you’ve got mortgage payments to cover.

Off Plan Property

Pros – The cost of off plan properties is often a major selling point. As they’re being sold off-plan, as opposed to newly built, the cost can be considerably lower, which attracts some buyers.

Cons – Sadly, the low price can sometimes turn out to be too good to be true. For example, it may be a reflection on the fact that the properties on the development aren’t selling, which could mean that it will take ages for it all to be finished. There’s no fun for anyone, even tenants, to live on a building site.