KentOnline

bannermobile

News

Sport

Business

What's On

Advertise

Contact

Other KM sites

CORONAVIRUS WATCH KMTV LIVE SIGN UP TO OUR NEWSLETTERS LISTEN TO OUR PODCASTS LISTEN TO KMFM
SUBSCRIBE AND SAVE
News

Gone to the happiest bidder

By: Ray Edwards

Published: 09:00, 02 November 2012

Martin Roberts

You’ll know the friendly face of Martin Roberts, 48, as the presenter of BBC 1’s Homes Under The Hammer, where his real and passionate interest in the featured homes gives the shows a heartfelt twist. The property investor and developer tells us why buying at auction could be right for you – as long as you act cautiously.

It’s mixed news from the housing market. On one hand you have former Crimewatch presenter Nick Ross who’s reportedly sold his London home for £35m – 40 times the cost.

Then there’s a recent YouGov poll from housing charity Shelter showing 59 per cent of adults who don’t currently own their own home doubt they will ever be able to afford to buy in their local area.

And, finally, according to research from Mortgages for Business, gross yields on residential buy-to-let properties are rising appreciably as a result of falling house prices and high tenant demand.

mpu1

Where to start in deciphering all this?

Well Nick’s good fortune proves to my mind that bricks and mortar remain a sold investment even when times are tough. Obviously we’re not all lucky to live somewhere as exclusive or as buoyant as Notting Hill when it comes to price rises.

Outside of London and the South East, the market is especially tough, for sure. So the Shelter research, though sad to read, doesn’t surprise me one bit.

Whether you’re a first-time buyer looking to get a toe on the property ladder, second steppers trying to find a bit more space, or a prospective buy-to-letter, it’s all too easy to think the odds are stacked against you in the current climate.

However, I’m a big believer that we can remain a nation of property owners if we play our cards right and search out those bargains.

When it comes to buy-to-let, I’ve been banging the drum for ages on this. There are some good deals available if you know where to look.

mpu2

The rental market is booming, it really is. The amount you could be getting in rent is going up yet the house prices are going down so your yield is rising.

Do your research to check out an area – it might not be affordable to buy locally but down the road there are deals to be had.

My top tip for getting the best deal is through property auctions – there are some real bargains to be had with reductions of 20 to 30 per cent. If you’re a seller, especially with a quirky property, auctions can be a fast, safe route to a sale.

One of the most common questions I’m asked at my property investment seminars around the country is: ‘Aren’t auctions scary?’

The answer, of course, is no, if you’re well prepared and know what you’re doing. You will need to be able to act quickly financially.

Go along armed with a mortgage in principle or cash – at least 10% in funds for the deposit – ready to exchange on the day.

You’ll have to exchange legally binding contracts at the auction. A maximum of 28 days later, but possibly as few as 14 days, you’ll need to complete - so sort your finances now.

Different mortgage providers have different requirements for the state of the property. Some will require a working kitchen and toilet, others will not. This could be important if you’ve bought a wreck to do up.

Register in advance with an auctioneer and visit the property you’re thinking of bidding on beforehand. Ideally, get a survey done. If not, at least visit with a builder, who will tell you what the property needs doing.

Some 75% of properties homes sold at auction need at least some work.

If you’re nervous or don’t trust yourself to stick within your price limits, get someone else to do the bidding for you. If you can’t attend in person, you may be able to bid by phone. Don’t jump in too early.

Wait until you feel the bidding is petering out, and don’t panic and overstretch yourself if the price goes over your maximum.

Remember, other houses will come up at the right price.

So what are you waiting for? Good luck.

Visit www.MartinRoberts.co.uk for more property advice and details of Martin’s property training courses, that are held around the country.

Read more

More by this author

sticky

© KM Group - 2024