Qafartunately for their previous owner-occupiers, Ait category of property continues to feature considerably in many auctioneers' catalogues in the ;ssions ihai occur from time to time. •1st feeling for those that have been dispossessed, Acre is no doubt that auction houses, speculators, feeders and new owner-occupiers all benefit from sxh situations. The losses registered by the finance houses and the insurers may only be the result of a Aastic domestic property revaluation or may also hate been occasioned by the surfeit of vacant houses •tiered in the sale rooms because of a high level of •cpossesions at any one time.
' doubt, there are some very good «aloe-for-money properties to be purchased at Bjcoon. 'Repossession' is not to be considered synonymous with 'bargain'. You should still i>:roughly research your target property.
rProperties that are owned for the benefit of the investment they produce are frequently included in catalogues. Investors cover a range of buyers fnm large pension funds and commercial investors at oie end, through to medium-sized investment companies and smaller private pension funds, right •tarn to individual investors, looking for a satisfactory return on their money.
The range of properties includes:
•office investments;
•shop investments;
•domestic investments (single houses, blocks of flats and portfolios of houses);
•ground and chief rents;
•investments in land;
•investments in easements;
•reversionary investments (where the investor is concerned with long term income or growth in it)
What affects the price of investment properties?
Prices paid for investments depend on many factors winch include:
•security of the covenant of the payer of the rent;
•the quality and position of the propertv;
•the potential growth or variation of the ii collectable;
•the frequency of rent reviews;
•the investor's view of the future of the m market and future interest levels;
•the investor's view of the yield which is appropriate for the type of property;
•the nature and responsibilities of the lane
•the nature and responsibilities of the tent
•other factors which could affect the futui income of the property favourably or ad\
A portfolio of lots being sold by property dealers
You should be aware that occasionally the sa properties feature in different auctions at dif times. A tenanted shop in Liverpool may firs sell at an auction in that city and then some later reappear at an auction in London. A va repossessed house may be sold at an auction outside the capital and subsequently reappes hands of a local auctioneer in the town in wl property is situated. A portfolio of domestic investments may be offered 'en bloc' in the c appear in another auction in that city six mo later broken up into smaller units and then p 50 per cent of that portfolio will be represen individual lots in, for example Manchester, Birmingham or Liverpool 12 months later.
Do not be totally discouraged from being int in these dealing lots, but do watch out for th< combing auction advertisements frequently. 1 see a property which interests you, approach care and only after thorough research.