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Are you thinking of buying a repossessed property at auction?

www.glitec.co.uk/2009/01/are-you-thinking-of-buying-a-repossessed-property-at-auction/

As most people are aware the housing market is going through a lot of turmoil at present, as it has been for some months.

www.glitec.co.uk

As most people are aware the housing market is going through a lot of turmoil at present, as it has been for some months. Many homeowners are unable to keep up with mortgage repayments due to financial difficulties and this has led to a rise in repossessions. And whilst house prices have been falling many would be buyers cannot get the finance that they need to take out a mortgage because of the tighter credit conditions that have come into play over the past year due to the global credit crunch.

The rise in repossessions has resulted in a greater number of properties going under the hammer at auctions, as lenders try and recoup some of their money as quickly as possible at a time when even they are struggling to raise finances.

For those with cash in the bank and those able to get their hands on finance to purchase property this provides the perfect opportunity to purchase property at a knock down price. In fact, investors have been able to find properties at heavily discounted prices at auction recently, as house prices in the UK continue to fall.

Between June and August this year it is reported that nearly four thousand properties were sold at auction, and the average price that the properties were sold at was Ł130,400. This was a drop of over 23 percent compared to the same period last year, where the average price on auction properties was Ł170,300.

One industry official stated: “Investors are benefiting hugely from the fall in house prices and the market is very much price-led, with properties with a low reserve selling well, particularly in traditionally popular areas such as Hertfordshire, Buckinghamshire and Berkshire. Repossessions are now making up over 20pc of the properties on sale at auction. Banks and lenders offering repossessed properties are often keen to secure a sale on the day and are less worried about achieving a high price. As a result these properties are selling extremely well compared to other lots, with investors bagging some excellent deals.”

Many people that purchase property at auction dpo so to rent the property out, and for those people it is important to do a lot of research with regards to the area in which the property is located, what sort of group or individual they want to rent the property out to, how much they can afford to spend, and what sort of return they can expect to get on the property.

Whilst there are some great deals to be had on property at auction, buy to let investors buying these homes must remember that there could be periods when the property is not rented out and must therefore be able to cover the cost of the property themselves for this period

Repossessed houses are available at approx 36% below their market value HERE!

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