Allsop Residential Property Auction February 2013

Allsop Residential Property Auction – February 2013

Interesting observations from property auction

Allsop Residential Property Auction February 2013

This Valentine’s day, Thursday 14th February we attend the Allsop Residential Property Auction in London’s Cumberland Hotel. Never have we seen such a packed out property auction room, it is not a small venue however felt more like a cattle market.

As usual we will bring you some facts of what sold and what did  not sell in the property auction, as well as what properties were bargains and what were bank busters.

Key observations include the expected high priced sales in London in particular in area such as Kensington, Chelsea and Fulham. Properties in North of England did not sell well with most of those present in the auction purely focused on London property. Finally a surprise observation was that of ground rents. These seem to be longer term but much more secure investments, with the bonus potential when it comes to extension or other approvals.

There were many regulated tenancies, therefore sold much below the vacant value of such properties. There was a great deal of lots that were for the unconventional investor.

Property Auction: The numbers!

The Allsop Residential Property Auction featured 288 lots, therefore it was not possible for PropVestment to stay for all. We stuck around until Lot 87, which really meant 72 active lots, with 19 withdrawn or sold prior.

  • Out of 72 lots, 56 sold with 16 where the Reserve was not met. 78% Success
  • Average highest bid was £287k but the average selling price was £237k.   Average unsold lot highest bid was £459k. This shows that the higher value lots struggled, with sellers keeping higher reserves.
  • Average sold lot was 27% higher price than the guide. Where as the average reserve not met lot was 3% under guide.

Residential Property Auction Bargains

  • Lot 61 – 3rd Floor 3 Bed Duplex Maisonette in W13, London, Rent on AST at £22k – Sold for £150k ….almost 15% rental yield…. 98 years lease left
  • Lot 76 – Freehold Public house in Wiltshire with a 9 year commercial lease at £24k rising to £25,880. Sold for £180k…. 14.4% Yield…pays for itself in under 7 years

Residential Property Auction Bank Busters

  • Lot 32 – £1300 Ground rent investment, Sold for £54k, and the leases are 124 years to run, only 2.4% yield
  • Lot 23 & 24 – Ground rent investment in South Kensington, £2k  and £2.4k per annum respective and went for £235k and £460k respectively. However there were flats in the buildings with under 25 years lease left. So the value is instilled with these rather than the ground rent income.
  • Lot 53 – Commercial with 11 years lease, and flat on regulated tenancy in Dorset. Sold for £181k, currently yielding 6%

Upcoming Property Auction’s PropVestment will attend:

Barnett Ross: Thursday, 28th February 2013 12 noon Catalogue now online
Radisson Blu Portman Hotel, 22 Portman Square, London W1H 7BG

Salter McGuiness: Tuesday, 5th March 2013 1330 Catalogue now online
Quality Hotel, Empire Way, Wembley, HA9 0NH

Next Allsop Residential Property Auction Catalogue

Property Auction Final Say

Property auctions still seem like a great place to sell, especially if the property you own is not finance friendly. Meaning that traditional buyers will falter at a mortgage stage. There is a lot of auction activity at the large auctions but there is a massive bias to London.

PropVestment can help you vet potential investments and guide you to make the right choices for selling or buying property in auction. The property market is changing and you need to be fully informed prior to any decision.

Call us today for a chat: 07960 344 399

Previous Auction articles can be found in the Auctions section.

Official Allsop Results

Allsop Residential Property Auction Feb 2013 results

 

UK property market HS2

#HS2 – High Speed 2 implications on the UK Property Market

UK property market HS2With the announcement of the HS2 today, there has been much in the media, with a lot of criticism. We at PropVestment want to focus on the implications of HS2 on the UK property market.

Economically this will create jobs and provided technology is sourced within the UK will benefit us in the long run.

In terms of the thousand or so homes effected, we believe they have been offered 110% the market value of their property prior to plans announced. Home owners have got a good deal, especially in some northern reaches where the UK property market is almost non existent as UK potentially drops into a “triple dip” recession.

How does HS2 effect the UK Property Market?

  •   HS2 impact on UK Property MarketReduce Pressure on London
    As commuting becomes easier with journeys under an hour from Birmingham to London, similar to a journey from Zone 4/5 to Zone one within London. Therefore many will choose to locate outside London. Benefiting from lower property prices and potentially larger homes.
  • Revival of Northern Property Markets
    As from locations will be commutable to the major cities and London. Hence more people will choose to locate in those towns, boosting house demand and rentals too. Landlord’s and investors will find these areas as more attractive places to invest. First time buyers and young professionals out priced by London have the option of settling in Manchester, Sheffield, Leeds or Birmingham and able to travel more easily.
  • Revival of UK Construction
    It is inevitable that there will be need for new home and in the areas surrounding the HS2. Primarily for the construction workers and secondary for the end users who look to make use of the HS2 rail link.

 

Where to buy UK Property Top Tip: Totan, Nottinghamshire

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PropVestment 2013 – UK Property Market Outlook

UK Property 2013 – House Prices, Lending, Supply, Rents…

There is always much speculation about how the UK property market will fair when we start a new year. How will the market correlate to the economy as a whole, and the biggest question of all is whether its recovering from the credit crunch?

  • House Prices
  • Lending
  • Supply
  • Rents

UK House Prices in 2013

House prices are low currently and the advise from PropVestment is that property prices will not stay low forever. Simple demand and supply, population is growing faster than new supply, together with smaller family units means shortage. Further lending is still tight but there is major pressure to improve. If you can afford to buy now, do it.

Today Rightmove are claiming that sellers are pricing 0.2% higher in 2013

UK Property Lending in 2013

Investment property services

Lending to first time home buyers in the UK increased 11% in 2012 compared to 2011, however this is still considerably lower than pre credit crunch. There is constant pressure on lenders to lend more but the criteria remains tight. Hopefully 2013 will mean more realistic and universal schemes rolled out by lenders, with more scope than last years NewBuy and FirstBuy.

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First time buyers face scarce supple due to council property

London’s housing problem for First Time Buyers

Why First Time Buyers find it hard to buy in London

  • High Prices
  • Shortage of Properties
  • Difficult lending
  • SOLUTION – Sell council properties in Zone 1 & 2

This article discusses the various issues in the London housing market, addressing high property prices, housing shortages and high rentals. Linking these factors to the reasons why first time buyers are facing an uphill struggle.

I have lived in London my whole life and professionally work in the property industry with my company PropVestment. The aim is to provide information, analysis and property related services for investors. From my experiences in this field and from living in London my whole I make some observations.

First Time Buyers Problem:

Too high prices and shortage of properties

First time buyers should be able to buy ex- councilThe first thing that caught my eye this week was an article titled “London councils breaking B&B stay limit for families” on the BBC News website. The main thing I understood from this article is that Westminster council has broken the law by not housing 134 families into housing and not B&Bs within 6 weeks. The main take on the article as reported is housing shortage.
However, why are there so many demanding housing in Westminster, arguable the most expensive borough. Surely if you are in need of accommodation you should take or be given where available and not be given location preferences.

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UK Residential Commercial

Happy Diwali Property Investor

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Tesco Mortgage Buy to Let

Supermarket Tesco launches 1.99% Mortgage – every little helps

Tesco Bank launches fixed 1.99% Mortgage

Tesco Mortgage Key Facts

  • Tesco Mortgage Buy to Let1.99% Fixed until end 2014
  • 4.24% There after
  • 4.00% APR
  • £995 Arrangement Fee (£195 Booking Fee, £800 Product fee)
  • 60% Maximum LTV (Loan to Value)
  • More suited for Remortgages than First Timer Buyers

 

Tesco Bank 1.99% Mortgage

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Acuitus Commercial Auction

Commercial Investors getting high yields: Acuitus Commercial Auction

Property Investors get over 10% yield at Commercial Auction

Acuitus Commercial AuctionOn Thursday 18th October 2012, PropVestment attended the Acuitus Commercial Real Estate Auction in The Millennium Hotel in Grosvenor Square, London. We were present with a client interested in a couple lots, that unfortunately were outbid. However the observations told an interesting tale about the UK commercial property sector in particular the expectations of investors.
The first observation was that there was twice as many people as there were seats, leaving us to stand. This shows that the number even took the auctioneers and the hosts by surprise.

Although there were over 50 lots on offer, we could only stay to see the first 30 on offer.
Out of which 22 sold with 8 Reserve Not Met,  a success rate of 73%, much higher than other recent residential auctions we have attended.

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Property Investor London

London Property Market: McHugh & Co Auction October 2012

London Property market is active but tentative.
Investors want the right deal.

London Property MarketOn Wednesday 10th October, PropVestment attended the McHugh & Co Auction in London’s BAFTA with a client and prospective bidder. We observed some interesting trends from the lots and bidders.

There were a total of 32 lots, however only 19 were sold on the day or prior. So there was only 59% success rate. This shows that where sellers are keeping prices too high and investors are smart enough to hold back. This is contrast to a year ago when it seemed that almost anything was selling in the auctions. PropVestment wrote that auctions were for selling rather than buying. 

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Below market value investment property london

What the Change to Squatters Rights Law Means for Property Owners

Below market value investment property london

The controversial and much debated Squatters Rights Laws have, as of 31st September 2012, been amended to offer more protection to property owners.  First introduced in section 6 of the Criminal Law Act 1977, the laws were designed to prevent landlords from evicting tenants by use of violence or force.  They dictate that anyone gaining entry to a property against the wishes of the occupier, including the owner of the property, is in most instances committing a criminal offence.

Whilst the intentions of the Squatters Rights Laws may have been honourable, they have meant that the homeless have been able to take advantage of unoccupied properties and a report by charity Crisis in 2011 revealed that 39% of homeless people had resorted to squatting at some point.  In order to lawfully remove squatters, landlords have been left facing a legal process that can costs thousands and take months.  Until now that is.

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October Below Market Value Property Deals

London Investment Property Deals : Below Market Value High Yield Properties

London Investment Property Deals

Dear PropVestor

With Autumn coming along there has been a slight revival of the property market, albeit not a substantial one.

Nevertheless being in touch with the right sources there is always a DEAL available for you. Here is a selection of investment deals for you, just a few we have on our books right now.

DEAL ONE: 2 x two Bed Maisonette in Enfield

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