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Guide to Buying an Investment Property at Auction

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With living costs and inflation rates at an all-time high, people across the UK are now under more pressure to make their savings work harder than ever. Investment properties are undoubtedly one of the most popular and stable choices while more and more people are now turning to property auction opportunities.

INVESTMENT PROPERTY

At a time when house prices have climbed by 12.8% in just 12 months, prospective landlords and investors will naturally want to find the best deals for their investment properties. Here’s all you need to know about finding your dream building at a property auction.

Why Investment Properties?

When looking at investment opportunities, there are plenty of potential pathways to consider, ranging from cryptocurrency and stock trading to backing small businesses. In the current economic climate, though, investment properties stand out as the obvious choice. Their main benefits include;

  • While the rate of growth is likely to slow, property prices are only moving one way.
  • You can start to see some returns in a matter of weeks.
  • You get the benefits of a passive income while retaining an appreciating asset.
  • The huge demand for properties means you won’t be left with unoccupied assets.
  • Buy-to-let mortgages allow you to leverage profits from the bank’s cash.

Appreciating the potential of investment properties is one thing, but you can only see the rewards if you find the right properties.

The Growing Appeal of Buying an Investment Property at Auction

Property auctions have existed for generations and deliver several potential rewards, not least when dealing with value for money. It is a particularly popular method for purchasing fixer-uppers and assets that people have inherited from loved ones but either don’t need or cannot afford to run.

While auctions were always popular with some sections of the investors market, the digital arena has changed everything. Online property auction sites like Flick & Son Auctions provide a convenient way to research different properties. Crucially, taking this route to secure an investment property will also;

  • Provide transparent bid progressions that allow inventors to see real-time results and help users make calculated estimates about how much interest an asset has gained.
  • Provides are more realistic and affordable, especially as the majority of home buyers and investors use the traditional online estate agency platforms.
  • Enables prospective investors to check out investment properties from up and down the country to find the best options.
  • There are fixed dates for exchange and completion while it also avoids the hassle of dealing with long chains.
  • You can still use a mortgage to purchase the property and only need to put down a deposit at the time of winning the property auction.

Furthermore, it’s not only buy-to-let residential properties that can be purchased via auction. Commercial properties are also readily available and may offer exceptional value as the demand is often lower.

However, it is important to appreciate the risks as well as the rewards, particularly when considering the various property management services a property and tenant require. This is where a professional management company such as London based BPS can do the heavy lifting to lower some of the risks.

When searching for a clear, convenient, and cost-effective investment solution, buying a property at auction stands out as a fantastic choice. Better still, it can be embraced by first-time investors and experienced buyers alike.

Key Preparations Before Using An Online Property Auction

Finding an online auction site like Flick & Son, who specialise in property auctions, it’s imperative that you feel prepared for future investments. Aside from helping you gain the most out of the initial asset, it will set you on the best path for long-term investments.

It’s important to conduct a little research into commercial or buy-to-let mortgages. Further steps that may be taken to improve your situation include but are not limited to;

  • Build a bigger credit score and try to save the biggest possible deposit to strengthen your position before entering the marketplace.
  • If you are not getting a mortgage in principle, you should at least look to use an online calculator to ensure affordability.
  • Research the monthly rental prices in the location where you want to buy an investment home, especially if it’s not near where you live.
  • Consider whether your investments may be better suited to a joint application with a friend or relative.

Finally, even if you plan to make several investments, it is probably worth completing the first procedure before moving on to a second auction. After all, there are still plenty of steps to consider after winning an auction, ranging from mortgages to preparing the property or screening candidates.

Nonetheless, when handled correctly, auctions are a great way to start your investment property activities. It could be the key to staying ahead of inflation.