Assetz launches online investor auctions

Assetz has launched a new online property auction division to secure major discounts for property investors on new build homes. The auction delivers quick sales and cash flow for developers via a sealed bids system, while providing investors with bulk discounts by grouping bids together.

Assetz approaches developers struggling to sell in the current market and offers them a confidential bidding service, to avoid devaluing their site and brand. Investors bid for single or multiple plots on a scheme via the Assetz Auction website. Assetz then groups the final individual bids together and submits a bulk bid to the developer.

Stuart Law, Chief Executive of Assetz, explains:

"This confidential auction service gives individual investors access to the kind of discounts usually only enjoyed by bulk investors. The developer gets what they want: quick sales and increased cash flow, while the investor secures quality, high-yielding buy to let property for 20 to 40% less than the current RICS valuation."

With gross yields in the region of 8 -9%, cash positive residential property is likely to benefit strongly from capital growth over the next few years, as mortgage finance improves. Assetz is advising investors to use any excess yield to pay off the mortgage on a repayment basis, leaving a high yielding property with potential for strong capital growth. High income property such as this has a stabilising effect on a property portfolio - especially useful during a market downturn.

Stuart Law adds:

"The housing market downturn is presenting huge opportunities for investors, who are able to secure strong discounts on property with excellent rental potential. The window of opportunity will be brief however, as housebuilding output plummets and developers shed themselves of stock."

While mortgage finance is limited, Assetz Finance is currently able to secure 70% LTV finance for the vast majority of investors.

The Assetz auctions website (auction.assetz.co.uk) is updated weekly with new stock. Current properties for sale include a development of 9 new build townhouses in Rusholme, 5 new build 2-bedroom apartments in Stockport and 5-bedroom new build semi-detached houses in South Manchester, suitable for home buyers or investors. In addition, there are student properties specifically for the investor and holiday home units in Cornwall, Anglesey and the Yorkshire coast.

Investors recently purchased new build 2-bedroom apartments near Warrington through Assetz Auctions at £68,000 each. Further sales have since been achieved at £89,950 to homebuyers.