Cash Is King As Buyers Continue To Snap Up Bargains At Property Auction
01 March 2012
Osborne King’s first auction of 2012 presented bidders with the opportunity to snap up a number of substantial properties at bargain prices with 11 out of 17 properties selling in just under one hour.
The auction attracted a large attendance comprising mainly owner occupiers and buy-to-let investors with the majority of lots sold exceeding their maximum reserve prices comfortably.
Auction highlights included the sale of a mid-terrace, three-storey property in Bishop Street, Derry, which produces an annual gross income of £15,600 currently. This property exceeded its original maximum reserve price of £36,000 by a staggering 170% resulting in a final sales figure of £97,000. A former police station at Newtownstewart, Co. Tyrone went on the market for £70,000 with the successful bid reaching £105,000, while former bank premises located in the centre of Aughnacloy achieved a final sales figure of £55,000 exceeding its reserve of £50,000. Other properties achieving well in excess of their original asking price included two modern townhouses in Laurelvale, Co Armagh which each had a maximum reserve price of £49,000 and which sold for £63,000 and £61,000 respectively.
Commenting on the auction, Mark Carron, head of Osborne King's auction team said: "Obviously, we would have preferred slightly higher sales figures on the day; however, we are satisfied on the whole especially as the majority of these properties had been on the market for up to two years without a successful sale. It confirms for us that auctions are arguably the most expedient and efficient channel for disposing of certain types of property provided that the pricing is set at the correct level and that product brought to market is of sufficient quality."
Referring to the fact that some of the houses put up for auction had sold considerably above their maximum reserve prices, Mr Carron added: “There's no doubt that cash buyers are in a great position to pick up investments at possibly the bottom of the market. For example, two residential properties that sold for well above their maximum reserve price were excellent buy-to let investments with secure tenants in place and each offering an annual income of £5,000 – effectively an 8% gross yield. 2012 will continue to present good opportunities for cash buyers whilst restricted finance will limit the volume of purchasers and values".
Osborne King's next auction will take place on Thursday 14th June 2012 with a closing date for entries by Friday 4th May 2012 – www.osborneking.com/auction.asp