In 2008, insolvencies are set to increase and repossessions are thought to rise dramatically, which means there will be more bargains for property investors at property auctions.
The economy can be a difficult mistress. Timing and luck as well as business acumen play crucial roles when it comes to successful property investment. Property auctions can be places where property investors make huge profits by buying and selling at the right time and price. And although 2008 is set to be a difficult year for many homeowners, it could provide a bumper year for investors at property auctions.
Property auction – Credit crunch fall-out
As a result of increased credit card debts, the number of people going insolvent in 2008 is expected to rise, according to accountants PricewaterhouseCoopers. The report said: "There could be a spike in personal insolvencies next year as a result of over-borrowing by consumers." All this impacts on the housing market as increased debt can trigger repossessions. More homeowners in 2008 could be putting their homes up for sale at a property auction.
2008 – Property Auction, act early
Some property experts are saying that now is the time to buy. The credit crunch and jittery market means it's possible to snap up a home at a bargain price at a property auction. Experts are predicting the slowdown in the UK property market is a mere blip, giving a window of opportunity to buy while prices are rock bottom. It's thought that property prices will then readjust and rise again later in the year.
New Year Sales – Property Auction
Christmas is always a difficult time of year financially – mounting credit card debts can soon become hard to control. If you're worried about facing repossession a fast house sale at a property auction could provide the solution. More than a million people will come out of the current fixed-rate mortgage deals in 2008. That could mean paying an additional £140 a month on their mortgage repayments. The extra outgoing will prompt some homeowners to rely further on their credit cards. Such a move can lead to dangerous and unmanageable levels of debt. It's no wonder that it's thought more properties than ever will be placed on a property auction in 2008.
The fact that more people are facing repossession in 2008, with more homes available at rock bottom prices on property auction websites may be good news to property investors and first time buyers, but it will be misery for thousands of homeowners across the UK.
If you need help to get a faster sale or you are looking to buy a property at auction, contact Discount Property Auction. We're committed to helping you, whatever your circumstances. If you want to sell your home, you can use our dedicated online auction facility, which allows you to upload your property yourself and put it in front of genuine, interested buyers. Call us now on 0800 1313 999 or email admin@discountpropertyauction.co.uk to find out more.