Welcome to Houses for Auction

Property Investment at Auction

This is where you need to keep your head screwed on. Calculate the best and worst case scenarios for rental yields and you will have an idea of how much money you can afford to spend on a buy to let. Auctions have a habit of tempting people to spend more than they really want to, so don't lose your head while all those around you are losing theirs.

Flipping

Buying a property to renovate and sell on requires you to get any relevant planning permissions in advance, or to at least carefully research what the council has recently permitted or denied.

If you borrowed money to buy the property then be prepared to move quickly as any delay will cost you in interest. This will also free up your capital faster and allow you to move on to the next project faster.

Don't ever lose site of the crucial fact that you're renovating to sell to the broadest market possible. Neutral colors and essentials is the order of the day. Make sure every penny counts so that you don't get a nasty surprise when you come to look at your profits. A 20% buffer zone is a good idea when calculating your budgets to avoid running out of money.

Calculating Buy to Let Rental Yields

It's wise to factor in void periods, the times when you do not have tenants or where you are renovating. Check with your mortgage broker whether or not your mortgage payments will be covered by the rent you expect to achieve including any void periods you foresee. You might need to be prepared to pay towards the mortgage yourself, so determine beforehand whether the price of the property will grow enough to cover the amount of shortfall on the mortgage and still leave you a healthy profit.