If you are planning to invest in property, buying one at an auction could help you well. The process itself seems very simple enough, you bid then you buy. But it also helps to understand exactly what you can expect and what to do to get the most out of the opportunity. Buying properties at auction is now very popular today that it has ventured outside of auction houses. We now have plenty of auction sites where you can snap up properties on your laptop.
Make sure you register in advance of the auction itself. You don’t want to risk missing out the opportunity. Some auction sites will require for your address and contact details while others will require an ID and reliance letter signed by the solicitors. The details of the lots are commonly published around two to three weeks before the actual online auction. The details will include the length of lease, floor plans, legal details and price. Auctions are not for people looking for new buildings or quality refurbishments. They are an opportunity for property investors looking to produce profit from a renovation project. Some properties need considerable work. Some properties need work to the extent that they do not have a kitchen or bathroom. In cases like this, you would not be able to arrange traditional mortgages on them.
You can also generally arrange viewings directly with the auctioneers or their assigned agents. Some of the properties will hold open days while others will only offer individual visits or appointments. Occasionally, the original property information will have been changed by the time of the auction. Take note of this. If the price has been reduced or the property has been sold before the auction, you will want to know about it. These details are announced on the website or released as a separate addendum sheet.
You will usually have to pay a deposit of 10% of the allotted price within 24-hours after the auction has concluded. A traditional mortgage may take very long, which is why bridging loans are a more popular choice for auction buyers. A bridging loan is a short term property finance, which tends to last several months or to a year. Traditional mortgages takes weeks or months whereas in bridging finance, known for its speed, is usually available within a matter of days. Once the purchase has been completed, you can take your time to organize traditional mortgage or buy-to-let mortgage on the property. To exit your bridging loan, you will need to refinance when your loan term ends. Alternatively fix up the property quickly, sell it again then repay your loan and gain your profit. Avail your bridging loans at Henley Finance website. Know more about buying your property and bridging loans by visiting the Richard Butler Creagh profile page here.