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Interesting Manchester Auction Lots

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I've been having a good root around the upcoming auctions and there's some interesting stuff. I'll try to keep it to one lot per post to make replying easier.

I'll start with a shop and upstairs 2 bed flat in Northern Moor near Sale.

2dcbfhv.jpg

http://www.pugh-auct...er/20110428/052

Guide price £85k.

The interesting bit is that the shop is on a 5 year lease from 2008 giving a rental income of £6,500 per annum, if the shop looks like it's doing well and will re-sign the lease in 2013 for similar rent you could live upstairs and use the income from the shop rental to pay most of the mortgage and/or the income you need on the capital you tie up. (£540 per month shop rental income, £95k 5% 25yr repayment mortgage is £555 per month). Free 2 bed flat!!

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Land with planning for 17 2 bed flats in Stretford on the canal in a new build estate.

112a3o1.jpg

http://www.pugh-auct...er/20110428/050

Guide £175k to £200k

Even if it goes for £15k per flat for the land (£255k) with build costs of £80psf round here these flats (650sqft?) could be sold for less than £100k each. In fact a not-for-profit housing association should probably do the development, bring the flats in for £70k per unit and sell them on without buyers needing to partake in silly shared equity schemes..

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I've been having a good root around the upcoming auctions and there's some interesting stuff. I'll try to keep it to one lot per post to make replying easier.

I'll start with a shop and upstairs 2 bed flat in Northern Moor near Sale.

2dcbfhv.jpg

http://www.pugh-auct...er/20110428/052

Guide price £85k.

The interesting bit is that the shop is on a 5 year lease from 2008 giving a rental income of £6,500 per annum, if the shop looks like it's doing well and will re-sign the lease in 2013 for similar rent you could live upstairs and use the income from the shop rental to pay most of the mortgage and/or the income you need on the capital you tie up. (£540 per month shop rental income, £95k 5% 25yr repayment mortgage is £555 per month). Free 2 bed flat!!

Well, posssibly. The risk is that the shop does not perform and folds. That has happened a lot around me in Sussex. There are more empty small shops than I have ever seen in 40 years. Also, you will need a commercial mortgage for this and will not be able to sell off the flat separately as res lenders do not normally give mortgages for flats above a small shop like that. The likley appreciation is poor in the medium term.

Better to buy it and rent the flat, so you are covered both ways. Better not to buy yet. Still a long way to go. The property market here is being falsely held together. The seams are coming apart, but more slowly than we might have thought. But real falls are now setting in for most places outside central London.

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Lies, damned lies and auction guide prices.

I don't pay much attention to auction prices so I've no opinion either way but would be interested to see the auction result for these then.

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Loads of business stuff- but I think pugh's always are...

There's some takeaway places in Oldham for sale too..

And this one in Harpurhey - am sure it's been for sale for years

http://www.pugh-auctions.com/Lot/Manchester/20110428/055

http://www.pugh-auctions.com/Lot/Manchester/20110428/090a

In Morecambe but pics don't show for me.

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Lies, damned lies and auction guide prices.

I don't pay much attention to auction prices so I've no opinion either way but would be interested to see the auction result for these then.

You tend to get a mixed bag in auctions, I think they go low on guides for stuff that they're sure will be popular to pull retail buyers into the auction room (like the Shevington house on page 4 in the auction results below), but a lot of middle of the road stuff seems to go for no more than 15% over guide.

Here's the results for Eddisons recent North West auction, you have to click each lot to see the sale price, a few things that didn't sell are available for guide or guide + 10%.

http://www.eddisons....ShowAuction=156

Landlords buying tenanted residential seem to be looking for at least 8% maximum gross rental yield, though most rental incomes will be at the old median LHA levels, not the new 30th percentile rates which might knock a percent of that figure.

BTW that Shevington house still looks like decent value at £130k

vy5pty.jpg

Next door, similar starting size, but with a large extension adding another bedroom is up for £310k on Rightmove.

23t4gaq.jpg

http://www.rightmove...l?premiumA=true

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you sound like you know what youre talking about howarden? Whats your story?

I personally would be wary of buying owt in northern moor. Its a shit hole. I once sold some land round there at the peak of the boom, deal fell apart befores contracts exchanged as the market collapsed :)

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you sound like you know what youre talking about howarden? Whats your story?

I personally would be wary of buying owt in northern moor. Its a shit hole. I once sold some land round there at the peak of the boom, deal fell apart befores contracts exchanged as the market collapsed :)

Hi Bob, no story, just find it interesting to follow auctions, it's where I see value starting to appear.

If I was a tradesman who grew up in the local area rather than a spreadsheet jockey from out of town I'd be starting to think about bidding on some of these places.

I'd agree with your assessment of Northern Moor, but I remember living near Blackburn 10 years ago and seeing a news item about a street of terraces going for £1000 each, they'd have sold for 30 times that 5 years later. For me the very bottom and very top of the market are the most intriguing.

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I personally would be wary of buying owt in northern moor. Its a shit hole. I once sold some land round there at the peak of the boom, deal fell apart befores contracts exchanged as the market collapsed :)

You are indeed correct, sir.

I know that area very well. That flat is not worth a penny more than £8.5k, let alone £85k. Only buy if you are serious about being killed.

No wonder Sarah Ferguson decided to move on. :)

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I've been having a good root around the upcoming auctions and there's some interesting stuff. I'll try to keep it to one lot per post to make replying easier.

I'll start with a shop and upstairs 2 bed flat in Northern Moor near Sale.

2dcbfhv.jpg

http://www.pugh-auct...er/20110428/052

Guide price £85k.

The interesting bit is that the shop is on a 5 year lease from 2008 giving a rental income of £6,500 per annum, if the shop looks like it's doing well and will re-sign the lease in 2013 for similar rent you could live upstairs and use the income from the shop rental to pay most of the mortgage and/or the income you need on the capital you tie up. (£540 per month shop rental income, £95k 5% 25yr repayment mortgage is £555 per month). Free 2 bed flat!!

Unsold, available at £80k. I wonder if people's due diligence found a shop that was unlikely to continue to pay the commercial rental.

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Land with planning for 17 2 bed flats in Stretford on the canal in a new build estate.

112a3o1.jpg

http://www.pugh-auct...er/20110428/050

Guide £175k to £200k

Even if it goes for £15k per flat for the land (£255k) with build costs of £80psf round here these flats (650sqft?) could be sold for less than £100k each. In fact a not-for-profit housing association should probably do the development, bring the flats in for £70k per unit and sell them on without buyers needing to partake in silly shared equity schemes..

Unsold, available at £175k.

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Edward Mellor 4th May 2011

Lot 65 - 6 Avondale Road, Stretford, M32 0GB

Catalogue Here http://www.edwardmel...tion/catalogue/

72zvhc.jpg

2 Receptions, Kitchen, 3 Beds, Loft Conversion, Off-Street Parking

Guide of £60,000

Unless there's structural problems or terrible neighbours I think that's decent value at up to £75,000 for owner occupiers. LHA Rates for the area are £546 for 3 bedrooms so landlords unlikley to chase it up quite that high, maybe high 60's for them.

EDIT - Sold Prior, it's in the amendments link and doesn't mention price, thought it looked like good value.

PS - Homes Under The Hammer are going to be filming there tomorrow.

Edited by howarden

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Edward mellor is today - will try and watch it and make notes but might not be able to. They have a watch live link I think again

What happened to lot 75, Sold for £89,000!!!

It's a 28 room hotel in Blackpool with a reported turnover of £200,000 per annum.

No reserve auction. :blink:

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Edward mellor is today - will try and watch it and make notes but might not be able to. They have a watch live link I think again

Far too many unsolds for Edward Mellor to be happy, the next auction will be very interesting, they're going to be pushing hard for low estimates and reserves.

Did Homes Under The Hammer filming today put people off bidding?

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Far too many unsolds for Edward Mellor to be happy, the next auction will be very interesting, they're going to be pushing hard for low estimates and reserves.

Did Homes Under The Hammer filming today put people off bidding?

Bugger missed it.

Ah well they are not long with the results normally.

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Is anyone brave enough to take on a place sold where the mortgagee is not in possession?

If so, this 3 bed semi in Stockport looks fair value in the Pugh September auction at 60-65k depending on what state it is when you gain possession back again.

http://www.theauctio...er/20120906/103

2mn3sid.jpg

Wouldn't be brave enough to do it myself, but probably simple enough if you own the local taxi company or snooker hall. :)

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