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Dos and Don’ts at Online Property Auctions

online-property-auctionOnline property auctions are one of the best sources and avenues used by investors today. Unfortunately, not everyone is well aware and skilled to participate in one which can become a disadvantage. To avoid that from happening, came up with the following list of do’s and don’ts to guide you along.

Do take time to study. Like a regular auction, ample preparation shall be needed even if majority of transactions shall happen online. For one, there is the need to research on the facts and information regarding the properties being auctioned off.

Don’t forget to run a background check. The sellers and the site must be verified. Are they legit? Is it legal? How long has it been in the business? Do experts and other investors recommend it? Run a background check for safety and security purposes.

Do have the property surveyed. Hire a chartered surveyor to examine the asset pre-bidding. The day of the auction shall be announced so there should be ample time to do this. Never close on an investment without visiting it and validating facts.

Don’t get an asset with a lien on it. The reasons are pretty obvious. A property used as a lien, one where there is a legal claim on it, is very risky. There is a big chance that it can be foreclosed and the investment deemed futile and a loss.

Do have the value assessed. This is one of the things that a surveyor is hired for. Does the seller’s assessment on the fair market value come close with the starting bid? No not exactly. However, this data is still important to make sure that one does not overbid and pay up for more than what the asset is worth.

Don’t forget about ongoing costs. These refer to the repairs and maintenance expenses spent on the regular in order to ensure functionality and upkeep. This is not part of the market value and shall be borne by the buyer. A high level of these is very detrimental and costly in the long run even if buying the property came in cheap.

Do check the terms and procedures. Not all online property auctions are the same. They can be similar but several factors can be different particularly in matters of processes and rules. It is best to take a look at the site first, read and scrutinize. Don’t hesitate to pop a question too if there is any. These websites come with contact details for that.

Factors to Consider in a UK Investment Property

A UK property investment is considered to be a very wise decision considering that the country is known to be one of the world’s biggest and strongest economies. With a population and tourist number that’s pretty promising, demand for real estate assets is beneficial to investors. However, not all properties are the same. Some are more valuable, others can be expensive to maintain and there are also those that have very promising potential. Then there are the opposites.

With all that said, we decided to look into the details and list down the vital factors to consider when buying a UK investment property.

  • PURPOSE – There are different types of properties and each one serve a unique purpose. Make sure that the asset one buys or looks into fits the bill. It has to cater to the needs otherwise it will be a useless purchase.
  • LOCATION – As we all know, location is king. It speaks a lot about the value of an asset. Regardless of its purpose, location has to be convenient primarily in terms of transportation and proximity to significant establishments.
  • FEATURES – Some features to a home or an office building shall bring a huge bearing in one’s decision. Just see to it that such features fall into the category of need rather than pure want. The latter can play a role but it should not drive the decision alone.
  • SPACE – There has to be ample are for movement regardless if the property is for personal, commercial or industrial use. Cramped areas are a huge no-no.
  • UK-investment-propertyPARKING – It becomes a huge headache when parking space is limited or worse nil. A home may only need a few but a commercial space will demand more. Absence of it can drive customers away.
  • NEIGHBORS – The structures and establishments adjacent to, beside or within the area of the property is crucial. For example, buying a house in an area near a school, one’s office, a hospital and a transportation hub is divine. Also, the properties near it shall either increase or decrease its value in the long run.
  • SAFETY – This is a no brainer. Always make sure that the property is safe not only in structural matters but also in terms of the location’s crime rate and security levels.
  • COSTS –A UK investment property is deemed expensive too should it have high repairs and maintenance expenses, also known as ongoing costs. Make sure to look into this matter before closing in on a purchase.

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