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  • Auction Tribe

    Opportunities to invest

    With recent government announcements and court judgements, its easy to feel negative about the future. However, opportunities do exist for savvy investors.

    Loveitts online have just listed this portfolio of 33 properties for sale by online auction. The properties are situated across Burnley and Durham and have an average yield of around 8.5%. The opening bid is £1,875,000. Legal packs are available online now.

    For more properties see the Marketplace section of Property Tribes.

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    Bamboo Auctions
    0330 088 9659

    One Euston Square | 40 Melton Street | NW1 2FD

    http://www.bambooauctions.com

    Sell your property by online auction

    whats the reason for selling S24 ??

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    Learn Change and Adapt ?????

    What happens if no one bids £1.875m?

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    this sort of thing will become the Norm as S24 hits

    Happy Days MMMMMM

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    Learn Change and Adapt ?????

    Hi - we're not aware of any precise reason for selling, but if you contact Loveitts Auctions (either on 02476527789 or auctions@loveitts.co.uk), they'll be able to provide more information on the portfolio.

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    Bamboo Auctions
    0330 088 9659

    One Euston Square | 40 Melton Street | NW1 2FD

    https://www.bambooauctions.com

    Sell your property by online auction

    A yield at this level is not worth buying

    you need 10% today to make it work


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    Learn Change and Adapt ?????

    Each buyer's circumstances will be different of course. Thanks for the feedback!

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    Bamboo Auctions
    0330 088 9659

    One Euston Square | 40 Melton Street | NW1 2FD

    https://www.bambooauctions.com

    Sell your property by online auction

    My spreadsheet gives this:

    Buying at 1,875,000

    Cash needed = £530k (assuming 75% LTV)

    Rental income to give 8.5% gross yield is £13,300 (160k per year).

    Mortgage interest (4% for corporate borrower): £56k p.a.

    Agent fees (bulk deal at 10% - who knows if this will remain achievable??) £16k p.a.

    Insurance £6.5k p.a.

    Voids and maintenance 10%

    Gives pre-tax profit of £64,800, for return on cash invested of just over 12.3%.


    Of course it's a decent sum of money (51k after corporation tax), but could you get something better by e.g. buying another business for £500k? I don't know, but I think I agree a higher gross yield may be needed to make things stack up. In those areas I would assume zero capital growth for the next 10 years at least.


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