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How to cash in on auction bargains with a bridging loan
With house prices still rising in some areas combined with a growing number of repossession properties, there has never been a better time to take advantage of buying a house at auction. There are often bargains to be had for the shrewd investor with sufficient funds at their disposal.
Over 25,000 properties are sold at auction every year often at considerable reductions on estate agent prices. They can vary from problem properties through to genuine bargains whose owners have to sell quickly for a variety of reasons from credit problems to relocation. Frequently probate property and repossessed homes come available too and keen-eyed investors are quick to spot potential bargains.
Subsequently competition can be fierce, especially when bidding on property in need of refurbishment or land with development potential – these type of properties offer the prospects of large profits and will attract the attention of serious developers as well as private buyers.
Whatever type of property you’re bidding on, it’s important to get your finances in place before you start. Once the hammer has fallen you will need to pay ten percent of the final price on the spot using a cleared cheque or banker’s draft and you will need to complete the purchase within 28 days of the auction or forfeit your deposit.
One of the best ways of securing funds quickly is by arranging bridging finance. Usually available within a week of your first enquiry bridging finance gives you access to large scale funds with a minimum of red-tape – frequently bridging finance lenders are prepared to give an agreement in principal so the funds are there for your use when you need them.
