London Property Auctions are where the action happens! Lots are offered from around the UK in these auction rooms, resulting in auction catalogues that are full of potential treasure. The London based auctioneer Allsop, for example, regularly holds auctions with over 250 auction properties listed, most of which were London properties.
Auction properties vary in their condition. You can renovate the homes or knock them down and build new homes maximising the space available and therefore your profits. You can sell them on or keep them to rent out to tenants.
Buy a Property at Auction
Finding a bargain at a London Property Auction isn’t difficult. Despite the current economic conditions, property isn’t selling ultra cheap in London. There are several reasons for this. One is low interest rates means that there are fewer forced sellers, and even on the incredibly poor average rental yields, it is still possible for most landlords to keep up their interest payments as London has the highest monthly rents in the UK.
Also the devaluation of pound sterling against other currencies, especially the Euro, means London is good value for foreign investors and non-domiciled residents. Non only is the property cheaper for them, but eating out and other living expenses are relatively well priced too. Also people love living London. Contact us for more advice about London properties.
Local property developers say “When should we start work on a property once bought from an auction?”
WCHLC says “It’s best to start work as soon as possible as it means you can get the house back on the market faster. Begin with clearing out anything old that has been left, stripping walls and removing plaster boards etc. Hire a clearance company to remove this waste so you can continue working on the property and you don’t have to faff around with taking trips to the dump. Then, get in touch with a local building company so they can re-plaster the property and discuss any structural changes you are thinking of making. It’s always best to get the opinion of an expert.”
Maximise Profits with a London Property Development
To find a good value property therefore, you need to look at a value proposition. What value can you add to a property? What idea to do you have? Do you know something that will increase your chance of getting planning permission compared to another bidder? Have you researched how much value turning a 3-bedroom into a 4-bedroom would create? Can you get building works done cheaper? Find out about property development loans.
If you have some sort of edge, you will be able to bid more on a property that others will ignore, and although it may not be a total bargain there is definitely a healthy profit to be made. And at the end of the day, thats what counts.