Perhaps the most expensive purchase that any of us will make is the purchase of a house.
It is obviously a basic need to have somewhere to call home; somewhere to feel safe.
That need for a place to be, causes us to enter into the largest financial contract we will ever enter into.
Even renting a property can be a major expense with deposits and contracts to sign.
This basic human need to have a home can also be a form of financial security. House prices rarely go down except in a serious circumstance and almost always recover given enough time to recoup. There are however some instances where this is not so. For this reason, it is extremely important to have legal advice and support during the whole process to steer you in to the right direction. Or as they say on Homes under the hammer “read the legal pack”.
Buying a house or property via an auction has become more and more popular in recent times. It is often felt that it is a cheaper option with the chance of bagging a bargain and having the purchase finalised with the fall of a hammer. This is really useful for buyers who have their finances ready and their legal advice to hand.
In fact, the chance of purchasing multiple properties is enhanced by the ease of property auctions.
They have been effective in allowing investors to obtain any number of properties to either quickly flip the property following redecorating or upgrading, or to hold a portfolio of houses of multiple occupancy set to rent out to students or professionals needing access to work places.
Real estate is a growing opportunity for investment and therefore financial security. This brings in the betterment possibilities for local trades people and can really lift the fortunes of a previously downcast area. For the investor there are rich pickings available for those who have the courage and staying power to complete upgrading and letting out.
This holds true also for those who purchase real estate in the more affluent areas. Property purchases in metropolitan areas in major cities, while costlier, have the potential for high returns. There may be many and varied reasons why sellers choose to put their property up for auction rather than selling in the normal way.
A potential purchaser has the option also to leave a proxy bid if they feel they may be tempted to go over their ceiling bid. It can be very easy to get swept up in the moment and go above your limit. You can also book a telephone bid or use the internet to keep pace with the auction while not actually being present in the auction room. Many a bargain can be had as long as one holds their nerve.
It is important though, to do some homework before hand to make sure that you have all the information necessary to go forward. Legal packs that come with every lot are a must to read and understand. Finances must be sorted prior to the hammer going down as there are strict rules as to payment times and other restrictions. With plots of land it is useful to know in advance if planning permission will be forthcoming or whether leases will likely be extended. Some buildings may need change of use permissions and other technical details.
As with every real estate purchase you need to have all the facts at your disposal and know just what is required and when. Having said that buying land or property at auction remains an extremely efficient system and can be highly profitable and time saving.
