A conversation about auctions with property investor Stuart Thomas
by Phil Saunders, YPN writer and property investor.
It was an absolute pleasure and a privilege to interview Stuart Thomas for this month’s feature on purchasing property at auction. Stuart was expecting the birth of his second child around the time of our interview, so I was honoured that he shared so much of his time and expertise with us during this anxious period for any expecting parent.
Stuart is an incredibly experienced investor who buys a large part of his portfolio through auctions. I have only purchased a couple of properties this way, so to learn some of the top tips from an expert was really insightful for me.
In spite of his experience, he still has the occasional challenge as we all do. Having him walk me through a case study with all the hurdles he had to overcome, especially within the tight auction timescales, opened up my eyes to the potential pitfalls of this method of purchase.
In fact, he was so brimming with auction knowledge that it was a struggle to pack it all into the article! Here are just a few of the top tips he shared with me:
- DO NOT try and get a standard mortgage on a property you’ve just bought at an auction. Have a quicker finance option in place (bridging for example). It’s very unlikely that you will be able to secure a mortgage within 28 days.
- DO read the FULL auction pack. Pay particular attention to the special conditions of sale. Usually near the end. A lot of hidden nasties can hide in here!
- NEVER purchase at a price above your cash limit. As we discovered with Stuart’s story, if you have to, pay in CASH. Make sure that you CAN.
Buying at auction can be an incredibly lucrative way to secure property for a great price but it does come with risk. Make sure you have a full understanding of these risks, what to look for and what to avoid. This month’s YPN feature is packed full of this specialist knowledge so we can help to set you off in the right direction.
To read the full article and details of the case study, subscribe to YPN Magazine.