PROPERTY PROBLEM
I bought a house for £162k at auction but made a MAJOR mistake – I wasn’t sure if I’d be able to come back from it
And her error wasn't that the house was next to a graveyard
IT can be a huge risk to buy a home in an online auction.
And that risk is exponentially increased if you have a drink before bidding - as property investor Abi Hookway discovered.
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In aAbi admitted she was on holiday in Croatia when the auction took place, and she'd had a few drinks before placing her winning bid of £162,500.
"One of the things you shouldn't do when you've been on an online auction is have a few drinks beforehand," she sighed.
"So the sun was shining, I'm in Croatia and I decided to have a few drinks.
"Then the online auction started and because I wanted to get this property and I'd had a few drinks, I paid more than what I should have done with it."
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"Number one tip for me, never drink and auction at the same time," she said.
"Ends in disaster!"
But luckily for Abi, it wasn't a disastrous decision for her.
Despite the fact that the house is situated next to a graveyard, she ended up making a net profit of £5,085.
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In the TikTok video, Abi shared pictures of the property looking rundown before she got her hands on it.
She then revealed she spent £56,300 on renovation, and £7,200 on tax and legal through the auction - meaning she'd spent a total of £226,000 on the house.
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It then got revalued at £300,000.
After that, Abi "put a 75% loan to value mortgage on it which pulled out £225,000 which means I left £1,000 in this deal".
"Or I could have sold it on and made £75,000," she explained.
"This brings in net profit after all costs a year £5,085."
Concluding, Abi said: "It's a beautiful property that goes up in value.
";So luckily for me my drink and auction bid paid off!"
5 Tips to Get on The Property Ladder
Saving for your first property is tough, but it is possible. Here are a few steps for first-time buyers.
1. Cut back on luxuries and start saving
Consistent monthly saving is the best way to accumulate enough money to get on the ladder, for a deposit and purchase fees. To do this, you need to take a look at your monthly outgoings and think about what can be cut out - holidays, new clothes, weekly takeaway.
Using a savings calculator can help you to establish how long you will need to save for a deposit. Based on your income, you can figure out a realistic amount to save each month.
2. Have a realistic property search
Set a budget for the property price you would like to buy, and think realistically about the location and size of your property. While we all may want that house with a view or extra bedroom, can you afford it?
3. Research Help To Buy and Shared Ownership schemes
The government has introduced a few ways to help first-time-buyers get on the property ladder and they're great for those on lower incomes or to buy a property in more expensive areas like London.
4. Consider buying with another person
Investing with somebody else you know is a sure way to get onto the property ladder. You only need to save half the amount you would otherwise, so you can work towards getting your property sooner.
You can invest with a friend, family or partner. Naturally, it is a big step and a huge commitment so be open and honest about what you expect from living together — if you haven’t already.
5. Talk to a mortgage broker and get your documents in order
A mortgage broker can tell you exactly how much you can borrow for a mortgage, what you will need to pay monthly and in upfront costs.
"I made a HUGE mistake when I bought this property!!" Abi captioned her video.
"That's so funny, I love it!" one person commented on the clip.
READ MORE SUN STORIES
As another admitted: "I bought a large commercial unit in auction while sat in Bali and got a bargain!"
"Amazing!" Abi replied.
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