Are we at a stage where it's worth looking again at investing in the purchase of houses for renovation/reselling?

I sat in on a property auction at the end of April this year. Most properties (mainly houses, cottages, smallholdings and pubs) did sell (ie, reached or exceeded reserve) except pubs, which remained unloved unless suited to immediate conversion, but nobody was bidding strongly above the published guide prices. The room was packed (about 125 people), but quite a few of those who were registered to bid (ie were holding a numbered card) held back from doing so.

I'm not quite ready to be buying anything myself, but I have viewed a few places in the past few weeks, and will probably be sitting in on an auction coming up at the end of the month, just to get a further feel for how things are going as we head into autumn.

On my patch (southwest Wales) the agent most heavily involved in auctions is John Francis - and it will be one of their two auctions (at Carmarthen on Sep 30 or Swansea on Oct 1) that I'll be attending. (Or maybe both). There's about 15 properties listed so far at each. The agent's website for these auctions is www.johnfrancis.co.uk/auctionnew.htm

I've viewed the 65k semi in Cardigan (selling at Carmarthen) and the 50k detached one at Brynamman (selling at Swansea) - and it's that latter one which seems to have the greatest potential markup margin, so I shall probably be seeing how that one does - though it's not in the right locality for me - I'm going to be looking to buy somewhere around the central english/welsh borders next spring/summer. Does anyone here have any guidance on which agents to check out for auctions in that area? And any info on particular properties suitable for renovation there?

I will post the outcome of these two auctions on my patch, just out of interest - to see how things went compared with whatever guide prices appear in their catalogue.

Let us know of investment opportunities at other upcoming auctions, and how they pan out over the coming months.

I went to a wedding recently very close by. There is a power station nearby and they have a steady supply of renters in the area.

I might take a look Saturday

On 27th August, I sent off for the 'Legals' on:

Allsop's Auction: 15th September 2011 - Lots: 82, 83, 84, 85 and 86

The auction is on 15th September and as of today, 7th September, I've not heard a peep. Something possibly stinks with them.

Important Tip: Don't buy property at auction until you've had the legalities checked out by a professional. You might find yourself involved in a contract to buy a property with an auctioneer, where the property has defective title.

The flats above, may well have a covenant in their leases, which cannot be adhered to and the seller, ie, the bank, may not be able to sell the buyer the full title but only the part thereof.

I see from my checks that they originally sold for around 185k each. I also noticed that one is currently for sale with an Estate Agent (Connells), complete with a brand new kitchen and priced at 135k.

As of the present time, the original developer has still not completed the ground works outside of the flats and the ground is still rough.

I've had nothing since the email dated 20th July.

I always read the legals and in the past have paid for a solicitor to check if I am unsure of something.

I am looking to buy one of two ex local authority flats at the Barnard Marcus auction on Monday.

The legals for the Isle of grain house were only available yesterday for the sale today.

I meant I've heard nothing from Allsops since the preliminary date. Assuming they were built when the lease was granted in November 2006, they took a while to sell as new builds?

Lot 281 (Bromley) doesn't look bad - guided at 40-60k most recent similar sold 215k November 2010.

Looks too cheap to be true

Could be a structural problem with Lot 281 Bromley

It looks to have a very nasty settlement crack to the rendering on the front wall, don't you think?

Look to the LHS just above the arch.

I doubt its settlement - they are mainly 30s built. More likely A window or doors have been replaced/installed behind that hedge and either no lintel put in - or more likely, it wasn't supported properly during installation. The latter is quite common with so called expert double glazing installers who fail to support bays properly when replacing a lower bay window.

You could be right Exec. Looks to be on a slope as well. If it cost 50k to fix and you bought it for 50k it might still be a good buy

Looks quite nice across the road from it on Google's StreetView.

"If it cost 50k to fix and you bought it for 50k it might still be a good buy"

I was just thinking that, Jeffmack. The 'you' meaning you and not me, though. ;-)

Help me find a 'doer-upper' near Poole/Bournemouth to earn some money on.

Something priced around not much more than circa 200k to buy, or preferably even less. A sea view would be appreciated too but probably a bit much to ask.

Results from Mustbesold.com auction on 6th Sept.

Lots Offered 68
Lots Sold Prior 11
Lots Sold in Room 21
Lots sold after 2
Lots unsold 34
Total Lots Sold 34
Percent Sold 50%

There are always properties at auction in Bournmouth.

I use eigroup.co.uk, you can search by location but you can not get the auction details unless you subscibe (300 pa) You need to do some detective work to find the auctioneer

Dorset Auction Properties

http://www.edwardmellor.co.uk/auction/catalogue/

Auction is Sept 13.

Doc - if you are looking for property in Bournemouth, you should be aware of this it may affect the resale value :-))

Was at the Barnard Marcus auction today and it was clear that for all lots the guide prices were well below the reserves. The difference was far in excess that any catalogue I have seen before. When I arrived the room was very full, but as every property went though, mostly unsold, even though the last bid was well in excess of the guide it set the tone for the sale. The room quickly started to empty and by lot 50 (of 176) the room was only half full. The auction assistants were running around trying to complete deals after bidding finished by asking for the under bidders best offers. I would say that only 35% was sold in the room.

I bid on two that made in excess of the guide but were unsold, and one I bid to 83,000 and it was sold for 84,000

Results from the Barnard Marcus auction. They list 90 lots sold in the room, but many of those were unsold at the fall of the hammer and tied up afterwards.

Auction Date Monday, 12 September 2011
Venue Grand Connaught Rooms, Great Queen Street, London, WC2B 5DA
Start Time 11:00
Lots Offered 174
Lots Sold Prior 20
Lots Sold in Room 90
Total Lots Sold 110
Percent Sold 64%
Total Raised 14,989,500