It has been just over six weeks since buy-to-let landlords were hit with tax changes designed to turn them away from investing in property.
But the most ardent property buyers are undeterred.
Buying via auction is fast becoming the investors favorite method of purchasing properties. Even with stiff competition, buyers normally pay around 25pc less on average for an auction property.
But don’t be too hasty, buyers should view and get a survey carried out on a property before auction day. With a trusted solicitor they should trouble shoot any possible pitfalls before putting down cash.Bids can.
Once the hammer falls buyers must pay a deposit, usually 10pc, and complete the sale within 20 to 30 working days. The final price will include auctioneer fees, typically 2pc plus VAT.
Just this week London saw one of the biggest property auctions in its history, the room was packed out. It was the biggest turnout auctioneers Allsop, one of Britain’s leading residential property auction houses, had seen since the start of the year.
The central London event played host to several thousand investors many of whom had aspirations towards buying in London and more precisely the south east.
The recent taxation changes had, had a knock on effect undeniably so: bids were lower as buyers took into account the extra costs caused by the additional stamp duty.
Cashing buying was much more prevalent at the auction with many buyers wishing to avoid the punitive change to mortgage interest relief.
Some buyers have turned away from buy to let all together instead looking to buy homes they can develop and sell on quickly. This a common process known as“flipping”.
Waltham Estates, is a family run Estate Agents based in the heart of Walthamstow. We can sell or let your home in Leyton and Walthamstow, we offer guaranteed rent schemes, so you never have to worry about missing your mortgage payments, should you choose to rent your property.When it comes to Property management in walthamstow, we offer an all inclusive service. Find out more