Best Property Investment Strategy of 2023
In a recent video for my YouTube channel, I spoke about a property investment strategy that is overlooked right now, that being auction properties. At the moment, there is a big opportunity for buying below market value deals, if you know where to look. Because of current market conditions, a lot of sellers are looking to sell their houses fast. This is particularly true in the case of auction properties. In many cases however, properties are failing to sell at auction, creating enormous opportunities for savvy investors.
If you are a cash buyer, or can sell deals to cash buyers, you can do particularly well with auction properties right now. Even if you aren’t a cash buyer, there are still amazing deals to be had. In this article, I will explain why now is the time to be buying houses and how to buy properties pre- or post-auction.
1. It’s a buyers’ market
Right now, we are in a buyers’ market. Sellers don’t know where house prices will be in a few months, and they want to sell their properties fast. Buyers that can act quickly, and get purchases over the line, have the advantage right now. Now is therefore a great time to buy. Some people say they want to wait for the market to pick up again, but I think that is the wrong approach. Once the market is going up again, it will be a sellers’ market. Then sellers are in control and good deals are harder to find.
This is the time to negotiate hard and get an awesome deal. The property market goes up and down, but over the long term it has always gone up. Demand for housing continues to increase in the UK, and I have no doubt that house prices will continue to grow long term.
2. Pre-auction offers
When a property is up for auction, there is an opportunity to make an offer to the seller before the auction takes place. Many sellers are extremely motivated right now and are therefore more open to these kinds of offers. You may be able to secure a below market value offer because the seller is unsure if the property will sell at auction. If the property fails to sell, they may be worried that the value will drop.
You can also underwrite the deal. This means that the property still goes to auction, but you agree to buy it for a specific price if it fails to sell. If the property does sell at auction, however, you split the difference with the seller.
3. Post-auction offers
If a property fails to sell at auction, this is a great time to put in an offer. The seller is likely looking to sell the property as soon as possible and will therefore be open to accepting a smaller sum. If you are able to demonstrate that you are able to move speedily, the seller may even choose you over other buyers offering higher amounts.