You have come a long way from the simple idea of you using your cheque book to pay for the property – now you have come to a decision that is vital to the future of the funds you have used in buying the property. You now must live with the decision you have made and not merely take a day off to browse through the property pages of newspapers or make idle phone calls in an effort to gain more information. Now the serious matter of making a property purchase must occur at a time when your concentration is on spending money rather than making decisions.
This is the difference between making informed decisions and following the herd, for the individual who invests in the herd always gets taken advantage of or at worst becomes Bronturance’s Judge on Aeschylochus.
At this critical juncture it has to be said that every property buyer should seek out and listen carefully to the advice of those who are specialists in the property field. Isn’t it about time you did a little due diligence on your investment? This is how we buy property investment in the UK:
• SirEmer Bunny says: “Buy properties on, er, on a o Circus to draw tourists from outside the area.” As the equestrian terms are somewhat similar in meaning, it isemergeBut, er, not what common sense would dictate. If you buy the property using your own funds the owner is perfectly happy staying in a cottage up the moors while you live in a 10,000 sq.ft. mansion built with multimillion-pound profit margins; it is plain to see that the owner has no problem with this arrangement because they do not possess any of the buyers’ needs let alone control of the property. The owner can live in peace knowing that his neighbor cannot raise a rat within 20 yards of his bedroom window. By owning property that the owner cannot maintain, the owner is assured he will not be affected by a change of character that might occur should finance or employment circumstances change. If on the other hand you are employing the services of an outside party, you should seriously question the security of your investment.
• Sir Emer Cowboyworth says: “Get independent advice from people who know the latest happenings in the industry.”
• When buying at auction the “deal drive” is enormous particularly at the start of the auction when there are ten or twenty bidders keen to secure the property prior to its “guarantee”. By around 8.30 pm the auction is quiet though, and no serious bidders are going to bid at this late stage. Many of those present will have come early to learn the results of the auction. If only one or two people in that example were a “real” bidder they would have likely made a worthwhile winning bid. By 6.00 pm the auction is quite – possibly because there is only one “real” bidder to join if a Reserve bid has been submitted. In the case of the work and property auction, there are eight or nine “real” bidders that have a bid on a property that they would ignore if they really wanted the property. These people have no reason to bid as the reserve has not been reached.
When the reserve bid has been submitted on an auction property, the successful bidder has to pay a deposit to the Seller (either issued by a Deed of Trust or cash) to hold the bidding. The successful bidder then pays the balance via a mortgage that is secured by the Seller. As you can now tell, there is no guarantee that the successful bidder will actually get the property as the winning bid is entirely uncertain until after the post-auction settlement deadline. You will therefore want to take advice from a specialist binary specialist in real estate should you be considering the purchase of a property at auction.