It's a good basic book which shows that it pays to research properties well before the auction. There is lots of legal stuff pertaining to the property and land which you need to be aware of, with a solicitors help. Buying property at auction is not a guaranteed path to riches, and could even make you bankrupt, and so you must still take precautions. I remember property developer Gary McCausland in his book How to make a million from property, saying that he has seen many people buy a property without having a building survey done first, and they got burned massively as a result. I don't like the idea of spending out money researching a property I might not be able to buy, but the book The Richest Man in Babylon says "better a little caution than a great regret".
The book mentioned how an 8% yield on property was good. I remember seeing a recent interview by TV property developer Sarah Beeny, who said BTL was not worth getting into unless the yield was 15% to 20 %. Those type of deals generally are virtually impossible to find, so getting 8% is indeed a more realistic target.
The book recommended the auction news services Property Auction News and Estates Gazette. These are both paid for subscriptions. I believe these are outdated as the fact is, Rightmove.com shows auction properties for free, as do auctioneers websites.
The book recommends extensive prior research of a property, and consultation with solicitors and surveyors. In reality, I have viewed a few pre-auction properties, and you only have a limited time to view the property (about 1 hour), so I don't think there would be time to carry out the extensive research he suggests. Also, a property can be withdrawn before the auction, so is it really worth spending hundreds, maybe thousands of pounds on researching a property before the auction? I think some research should be carried out, but when you get to the auction room, a lot of potential risks will still remain. It is still a reminder that you can get into serious trouble if you make no attempt to check out a property before auction.
Pages 87 and 88 have a buyers guide of all the things to do before the auction, such as arranging finance, instructing a solicitor etc. This is a plan I will follow if I buy via auction, but I wonder if there would really be enough time before the auction to get it done.
The book is padded out with lots of auction contracts and conditions of sale, which are blatantly there just to take up space.
The book does overplay the whole auction route, by overcomplicating things such as suggesting bidding strategies to get your property at a price you want. In reality, an auction is a simple process and only comes down to who bids highest on the day. It shouldn't take a whole book to get that one simple point across.
Moneyseeker3000 rating: 2 and a half stars out of 5.
The book is padded out with lots of auction contracts and conditions of sale, which are blatantly there just to take up space.
The book does overplay the whole auction route, by overcomplicating things such as suggesting bidding strategies to get your property at a price you want. In reality, an auction is a simple process and only comes down to who bids highest on the day. It shouldn't take a whole book to get that one simple point across.
Moneyseeker3000 rating: 2 and a half stars out of 5.
No comments:
Post a Comment