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buying at auction

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Author Topic: buying at auction  (Read 475 times)
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« on: December 17, 2016, 12:21:59 PM »

I have had five  modest BTLs for 16 years,3 have no mortgage,and nor does my own house.I have never used my home to borrow on,and never would (too old to take big risks)  I have seen the success of some acquaintances,buying run-down properties,doing up and selling on or renting out.Does one have to be in the building trade to make money this way? My other half is very good at many aspects of advanced DIY,but of course legally could not take on some things.He is thinking of winding down his own business,so there would be more time to project manage.

Any advice/warnings would be much appreciated.We are not expecting to make easy money,we have always had to work hard and make sacrifices.The thought of buying at auction  is scary,although we would  probably not need to  draw on equity to buy one cheaper house in this part of the world.
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« Reply #1 on: December 20, 2016, 11:43:57 AM »

I bought a run-down terrace in late 2015 and planned to do it up for, originally, resale... if you have an ability to stick to budget and do what the property requires, nothing more, then I think you can make money without being in the trade. However, there's the temptation to "make things nice" and that did end up with me putting in a Neff Slide&Hide oven and a Nest thermostat and 3 x Nest Protects and an Internet-connected Alarm system with key fobs you can use to set and unset it as you're approaching the house... oh, and brushed metal sockets (plus 5 x USB ones) throughout the house.

All nonsense. The property was bought for 56,000 and valued at 87,500 after having had 25,000 spent on it - that's not counting my labour (which I enjoyed). In the end I decided to keep it and let it out... as I figured, who knows this house better than me now?

It's ticking along nicely... relatively low maintenance, as everything is brand new, including central heating, electrics, hard flooring, skirting, carpet, kitchen, shower... nearly everything by definition.

The amount of tools I bought in that project is also insane. I still have my 255mm sliding compound mitre saw (used for the skirting boards I cut and installed myself) in my study, as I cannot fit it into the garage any more... that's where my nail gun is (also used for the skirting boards). Doing the skirting boards throughout the house is likely a job I will never choose to do again, in my life... it was a mistake removing them in the first place - the house had perfectly good skirting boards (if a little tired). My nail punches, my taping knives, my scrapers, my steamer, my angle finder, my pullsaw, my various rollers and brushes, my remnants of paint, my insulation, my plasterboard, my x, y and z and all taking up lots of space at home. I learned a lot... I did a lot... I learned what I'd not do again.
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« Reply #2 on: December 20, 2016, 02:59:26 PM »

Blimey,are you sure you are not in the trade?  My partner is an engineer,loves problem solving.He also likes tools,and pieces of "useful" wood. Your reply makes me wonder if he can be trusted to do the bare minimum.I can envisage some full and frank exchanges of views between us!  If this had been planned as a BTL, would you still have been such a perfectionist? 
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« Reply #3 on: December 20, 2016, 09:29:02 PM »

I just spent 225 on 10 x brushed stainless steel sockets with USB... for existing let properties, so, yes.
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« Reply #4 on: December 20, 2016, 11:24:57 PM »

If it pleases you to be so painstaking ,and you take a pride in high quality, that is reward in itself- plus obviously of benefit if you decide to sell up. Have you found though that it make the tenants any more respectful of the property?
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« Reply #5 on: December 21, 2016, 06:41:32 AM »

Any more = no. But I've not experienced anyone who has shown noticeable disrespect, yet. Even the one Tenant in receipt of LHA is house-proud to an extent, pity she won't regularly pay the modest top-up... but she won't be getting USB sockets!!!
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« Reply #6 on: December 21, 2016, 11:01:53 AM »

Ha,that'll teach her!
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