The houses for sale that cost less than a car
House prices may be getting ever more expensive, but research suggests you may actually be able to pick one up for less than the cost of a new car.
The latest Nationwide house price index found that house prices have increased by almost 3% over the last year, to pass £220,000 on average. Yet online estate agent HouseSimple.com has picked out a collection of properties that are currently available for less than the price of a basic three-door hatchback.
Its study found there are 10 properties on the market currently listed at £14,000 or less, with the bulk located in Scotland, as detailed in the table below:
Alex Gosling, CEO of online estate agent HouseSimple.com, said: “Despite property prices being unaffordable in many areas of the UK, it’s still possible to find good value out there if you spend a little time doing your research. It’s also a matter of managing expectations and being realistic about what you can afford.
“The examples we found during our research are probably only going to appeal to a very small group of people, because of the amount of work needed to bring them up to scratch. But it does show that even with a modest budget, there are properties out there which are well below the UK average price.”
The added hurdle
It’s not just the amount of work required that makes these homes different though; there’s also the fact that they are available for sale via auction.
Auctions are increasingly being held online as well as in person; it’s not all like Homes Under The Hammer. See YourMoney.com’s Ten top tips for buying a house at auction.
If you are interested in buying a property at auction, it’s important to do your homework in advance. A catalogue of the properties which will be auctioned off will be available in advance, and you can arrange visits to give them a look over in person.
If you are still interested, it’s worth sending the catalogue and its terms over to your solicitor, to ensure the correct searches are carried out.
Next you need to think about finance. You will need to put down a 10% deposit on the day if your bid is successful, and then complete within 28 days. A number of bridging lenders offer specialist auction finance – these are short-term property loans, allowing you to complete the purchase and then remortgage to a more conventional home loan later on.
Traditional mortgage lenders simply cannot get their finance in place to support an auction purchase most of the time.
The final step is the auction itself. Happy bidding.