The UK property market is never easy. Even for experienced landlords like my colleagues. They had a buy to let in which they had a messy eviction & the tenants destroyed the property. They decided to put the property in an Edward Mellor Auction in Manchester. They listed the property that needed a great deal of work for 65k. Ironically it sold be almost 90k…Plus needed close to 20k worth of works. This typical non professional property investor who bid up the price, did not really know the area…thought he was so clever buying a property that needed fixing up. The property is not even worth 85k. This demonstrates how silly and basically stupid so many new wannabe property investors are.
This clever investor probably never refurbished a property….he is red meat for a potentially unscrupulous builder. This clever investor probably does not know exactly what things should cost. The funny thing is when we sell ready made properties…so many of these clever investors go and look on the land registry…try to see what we paid….try to figure out the refurb & then through a ridiculous offer on the table. For example I had a chap who did exactly this and told me the refurb cost 25k. I completely laughed at him. Try refurbishing a 5 bed en suite in today’s world for 25k. Even more funny…how many emails and calls asking us to source HMO properties in Salford that can be purchased for 80k….
Bottom line…too many course goers…who never actually do a deal…or completely over pay for a deal they think they can refurbish…..or have not done their homework.
Just recent reality ….Great for my JV partners as they got out of a bad deal & made money at the auction…Typical Non Professional Auction buyer in Manchester