Recent (Sept '11) Allsop Auctions

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cashisking

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I went through the results of the recent auction. Many residetial properties are giving a return of 10% or more in some case.

Are the banks giving investment mortgages, if say you put up50% of the price.

What if you bought a property, and paid for it outright, is there a downsize
I know income would be treated for income tax.

I am thinking of attending Nov aution, if there is a few that catch my eye.
 
cashisking said:
Are the banks giving investment mortgages, if say you put up50% of the price.
What if you bought a property, and paid for it outright, is there a downsize
I know income would be treated for income tax.
Click to expand...

Media report most buyers are cash buyers. Its very difficult to get any level of finance for these properties. . I cant see much downside in owning a property outright-bar having your cash tied up in a non liquid asset, that may devalue, and may require expenditure to maintain it. As for tax-you pay that on a profit so,if you are making a profit, that means additional income coming in to you pocket. Not bad ?
So if you have the cash, and want to have a punt, go along in Nov. Make sure you do all your research and surveys etc in advance. Check there are no judgements on the properties and that the title is good. Do a search here re title issues on a property bought at the first auction in July-some issues came to light afterwards. Not sure how it ended uo-but AFAIK the purchaser was contracted to purchase it once the hammer had fallen.
 
Have a read of the thread on thepropertypin forum (buy,sell, rent category of the forum). They have a dedicated thread on the allsop auctions there. Someone has done out a comparison of the three auctions to date....which makes for interesting reading. The percentage rate of properties not being sold through them is increasing as they go along. Not saying any more than that as I don't want to infringe aam rules.
 
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