Anyone bought a property at auction? Can't work out why this house went for this money...

eta said:
probably as you suspect a combination of all 1-4 , I know someone , wanted to live on a particular street and put a note through every door offered them £25K over asking price for all the properties on the road, that was in the late 80's during a slump in house prices, BUT they wanted to live on that street and particularly on one side of the road, and they did get one of the houses and are still there , it is a vey nice property to be fair - House was about £100-£120K market price (in middle 80's) , nice 4 bed detached , in a sought after area
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I have had that in the past, I just assumed it was some commercial company pretending to be a private buyer.
 
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Dork Lard said:
My big Sis' thought she would jump on the bandwagon in the late 90's & set out to become the next Sarah Beeny.

I tried my utmost to help, steer & guide her, but she knows best & never listened . . . .

She bought a mid terrace, 2 up 2 down with a nasty kitchen & bathroom extension into the backyard. Bought it for £9k, spent £20k+ to renovate (to her standards) & put a tenant in who promptly wrecked it.

She sold it after 3yrs for £30k . . . . The market had moved sooo much in that 2yrs I reckon the original £9k property would easily have fetch'd £25k.
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Thsts sad.... I've known some arshole land Lords and plenty of crap tenants...
 
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Dork Lard said:
My big Sis' thought she would jump on the bandwagon in the late 90's & set out to become the next Sarah Beeny.

I tried my utmost to help, steer & guide her, but she knows best & never listened . . . .

She bought a mid terrace, 2 up 2 down with a nasty kitchen & bathroom extension into the backyard. Bought it for £9k, spent £20k+ to renovate (to her standards) & put a tenant in who promptly wrecked it.

She sold it after 3yrs for £30k . . . . The market had moved sooo much in that 2yrs I reckon the original £9k property would easily have fetch'd £25k.
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I knew several people buying/renovating/selling in the noughties, similarly, they were turning the properties round after 3-6 months thinking they were earning good money but weren't bright enough to realise they could have made the same profit without the hard work simply because of the price appreciation.
 
My first HMO. I had some GOOD people to call on for this one, & I needed them. The plan was to ID a property & redevelop it for under £30k a single bed. This was my turning point, big money involved & if it all went titsup it would've dragged me down & wiped me out forever. I would've ended up living in a bedsit in a HMO :) :) :)

It took 18mths start to finish but I owned it outright, not a single penny mortgaged & it was valued as an investment property at close to £1million. Then the rents started rolling in . . . .

This was the point when my Bank Manager started to make appointments to come & see ME, when architects started knocking on my door to draw my attention to various opportunities, & just about every tradesman in a 10ml radius wanted me to marry their daughter . . . .

Ambition is very dangerous unless it can be qualified with success. The bitterness of failure & the dirt of success. I got up off my arse & I did it.

I can handle the keyboard warriors & the Marxist revolutionaries, to me they are nothing, I think more of my dogs. No man has EVER stood in front of me & called me "a lucky bastard" & there is no one on this earth who can say I robbed them to my face.

Two things that I am most proud of in retirement, is my lad will be do a lot more than I ever did, & he's doing it with the sons & the daughters of the people I worked with.
 
You'll generally only make any decent money by adding extra space. Reconfiguring existing space to add a bedroom etc will add a bit.

But things like kitchens and bathrooms don't add much if any value.
 
There's added stamp duty of 3% to pay if you own more than one house
 
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That first HMO.

I knew full well the type of person it would attract as tenants & was thoroughly well prepared with how to deal with them.

The 2nd Saturday morning open day a young couple met me there for a viewing & my highly developed 'sixth sense' kicked in on overtime. I showed them around one of the two flatlets & finally asked him "WTF are you doing here"?

He told me he was orphaned at 14 & went straight to colledge from a council care home, they dropped all duty of care to him when he hit 18 so he worked 4x jobs to pay his way through Uni'. He was starting his first proper job next week & the girlyfriend was going to get any job she could until they found their feet & move up the ladder.

I put them in a small 2bed cottage I had empty & he learned his trade for 2yrs in that new job.

He's been my accountant for the past 20yrs, employs 30+ people & sometimes, if he's in a good mood, lets me & the missus spend the odd holiday in his other home on Malta.

For the socialists amongst you, I can't draw pikturez to best explain the above.
 
ffatboyjimm said:
Isn't there now an added stamp duty if you're buying an investment house to buy - refurbish and then sell for a profit. I think it's 3% of the entire amount so a £150k house bought to buy, refurb and sell for a profit will cost an extra £4,500 assuming it's your second home - This could take away half or a third of your profit on a house of this size
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ffatboyjimm said:
Isn't there now an added stamp duty if you're buying an investment house to buy - refurbish and then sell for a profit. I think it's 3% of the entire amount so a £150k house bought to buy, refurb and sell for a profit will cost an extra £4,500 assuming it's your second home - This could take away half or a third of your profit on a house of this size
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Is that the case now?
 
Dork Lard said:
He's been my accountant for the past 20yrs, employs 30+ people & sometimes, if he's in a good mood, lets me & the missus spend the odd holiday in his other home on Malta. For the socialists amongst you, I can't draw pikturez to best explain the above.
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That's a good story!
 
fillyboy said:
I knew several people buying/renovating/selling in the noughties, similarly, they were turning the properties round after 3-6 months thinking they were earning good money but weren't bright enough to realise they could have made the same profit without the hard work simply because of the price appreciation.
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I seem to remember on Sarah Beeny's Property Ladder back in the day she made that comment more than once.

There were definitely people that were able to ride the property wave in the 90's and up to 2007ish pre crash. Good luck to them I say. It's often nothing more than jealousy when people comment about these people in a negative manner.

Stating the obvious but money makes money. The real money (although with increased risk) in flipping property comes if you can afford to buy in more prestigious postcodes. e.g. you secure a property for £500k and spend £100k on it, so your exposure is £600k. However the property values at £750k so your theoretical profit is £150k pre tax etc. Stands to reason the potential profits are much more attractive if you have the financial backing to go this route as oppose to dabbling with flipping ex council properties and the like.

And yes, the opportunities are now less thanks to a decade plus of people getting in on the act.
 
Dork Lard said:
My first HMO. I had some GOOD people to call on for this one, & I needed them. The plan was to ID a property & redevelop it for under £30k a single bed. This was my turning point, big money involved & if it all went titsup it would've dragged me down & wiped me out forever. I would've ended up living in a bedsit in a HMO :) :) :)
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Can I ask you where do you see the opportunity to earn a crust in the property business? Thanks
 
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