Repossessions
February 11th, 2008 Posted in Property
I don’t know about you but I’m reading more and more about repossessions in the media, last week there was an interesting article in the Times indicating that many more repossessions are making it to auctions rather than being sold through estate agents, giving me a clear indicator that my theory about the market is correct. A few months back most repossessions would have been snapped up at around 15% below market value and now we see auctions houses placing them with guide prices of 20% BMV and then failing to sell them.
All this suggests that confidence is still in decline with even experienced BMV investors looking for 25% BMV +, at auctions. In reality, provided the rentals stack up nicely and there is enough cash-back to cover any remedial works, then fears of further market downturn should not be an issue as ultimately property investment is still a longterm strategy. That said I tend to agree with The Times and would expect to see a 5-10% drop in prices this year, but no all out crash and especially no recession.
We’ve recently launched a new “Ready Made Deals” service, many of which are repossessions which have failed to sell and there is a link on this site to the page where you can register your details and area of interest as these deals will be very limited.
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