Living in the UK is becoming more and more expensive every single year. Everyone predicts that wages will increase in line with property prices, but this never comes to fruition. This can lead to you renting in the long term. The concept of paying a landlord rent every month while you see nothing for it is frustrating. You want to get a foot on the property ladder to have an asset of your own. However, with the housing market difficult to break into for the first time buyer, you need to think outside of the box when it comes to finding a home. Take a look at how the realm of property auctions could work for you.
Scout It Out
A property auction is an intimidating environment to be in. In the auction hall, you will find seasoned investors and property purchasers looking for their next bargain. You may find it difficult to compete. Before you head to a property auction to bid, you need to get a feel for the auction. Head to a couple beforehand and watch how people bid, the increments of the increasing bids, and the auctioneer’s mannerisms. Set some dummy budgets for a few properties in the auction catalogue and see if you would have won them had you bid. As you attend more auctions, you will develop the confidence to help you when you finally venture to potentially bid on your first humble abode.
It’s crucial that you have your finances in check prior to bidding at the auction. One challenging aspect of property auctions is the need to complete within twenty eight days. This may mean that you need to investigate bridging loans to help you fund your purchase while you await your home loan application to complete. Then, you can pay back the bridging loan and enjoy your new house.
You must make sure that you are a responsible borrower with excellent credentials. If you have a credit card, ensure that you pay off the balance every month. Don’t venture into your overdraft for three months before applying for a mortgage and save those big-ticket purchases until after you have your home.
Don’t Get Carried Away
Some auctioneers use ruthless tactics to bid up the room. This means they may take pretend bids from nowhere to get the price to increase if there is only one interested party. You need to be focused and alert when in the auction hall. Set yourself a budget for the property that you have viewed. Try and view a few properties and check out the legal packs or each pad. They will have important details such as information about leases, ground rents or bylaws. Ensure that you stick to your budget and never go for just that extra bid. Doing this could see you venture into dire financial straits. Keep your head and ask a friend to come along with you to keep you in check.
Heading to the property auctions is not for the faint-hearted. However, it can also be a lot of fun, and you could find yourself making an astute financial decision when purchasing your very own home sweet home.