Auctions are ideal places to pick up property bargains or buy undervalued property. Bidding happens quickly, but don’t be deceived by the speed things move at: to be in the best position, you’ll have laid the groundwork for auction finance well before the hammer comes down.
If you are planning to buy a property at auction, auction finance is the perfect alternative to buying in cash. Auction finance will allow you to get access to capital quickly, which is useful if you want to snap up an investment property. These loans are also a great solution if you fall in love with a property that’s being auctioned, and you want to buy it despite your capital being tied up in other real estate and assets.
Generally, at auctions, you’ll need to have cash available to put down for the deposit on the day of the auction and have funds available to buy your property within the following three weeks.
Involving Enness well before the auction will make this kind of property purchase as easy and straightforward as possible. Your bridging finance broker will start by getting you an in-principle bridging finance agreement ahead of the auction. Armed with this information, you’ll be well-positioned to make the right bid, based on what you know you can borrow and what you can afford.
Auction finance will usually be readily available to you regardless of whether you are a seasoned or first-time developer. Whatever your experience, Enness will be able to negotiate an attractive package tailored to you. Lenders typically require more collateral for first-time developers, so you’ll want to bear this in mind if you haven’t bought at auction or developed a property before.
Auctions can be exciting, particularly if it’s your first time bidding, it’s easy to get swept up in plans and ideas. Always on your side, Enness will also act as a sounding board, listening to your ambitions, goals and hopes for your future property. Your broker will help you understand what kind of auction finance you can expect and you’ll be able to make sure what you can borrow matches your plans for the property. This way, you can decide if you need to reign your plans in a little or find out if you have the financial flexibility to do a little bit more.