Strettons Auctions has published the catalogue of their next UK property auction on 5th February and I have identified a few properties on the list to monitor. Property auctions in the UK are fast becoming the place for first time buyers as well as those looking for investment to find suitable property to buy. Strettons is a company that specialises in property available for auction in East London, however they also feature properties in other parts of London and the south east. In this post I look at a property in South London that seems like it will produce a good return if the potential buyer can purchase it at or around the guide price of £129,000.
This is a 2 bed first floor purpose built self-contained flat in a road close to local amenities and close to the town centre.
My research shows that this property was last sold for August 2006 for £154,000 so it’s interesting that 6 months later it is in auction for £25,000 less. Is this a signal of a change in the market? Well one property does not signal a change. There could be lots of issues why the owner is selling so until I can view the property I reserve judgement.
Rental Values in the area for this type of property are in the region of £750 – £850 per calendar month (PCM). Re-sale values for similar properties are in the region of £180 – £195,000.
This property represents a potentially good investment providing there are no issues structurally or within the legal pack, if it can be purchased around the guide price.