Auctions offer buy-to-let value opportunities
News Category: Industry News
Published: 12-Oct-2007
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Auctions are a good place for buy-to-let investors to find properties that they can add value to, according to one industry insider.
Chris Coleman-Smith, auction director for Savills, said that houses at auction offer buy-to-let investors the potential to make money.
"[On the] auction market you can buy a big, scruffy one-bed flat, and make it into a two-bed flat and let it out," he said. "Then you're adding value to it."
According to research from the Essential Information Group, the number of lots offered at auction in August this year was up 11.9 per cent on the figure for the same month in 2006.
Although there can be drawbacks to buying property in this way, such as the possibility of overpaying, auctions can also be more convenient for some buyers.
Mr Coleman-Smith said that "the main thing is you buy it on the day, instead of faffing around with agencies or buying privately".
He added: "That's the good thing about auctions, on the day either you sell or buy."
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