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StuG III

I Went To An Auction...

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So today I went to an auction looking at buying some land.

I was amazed and really quite disgusted by what I saw. The lot I was interested in had a guide of £40k-£50k and went for £80k. Although there were a few 'not solds', several other went for multiples of the guide price.

I was just amazed by the sheer amount of money being thrown about. My money is earned in saved over the course of many years, but I have no doubt I was competing with mainly borrowed money - money that's effectively been stolen from savers by QE and absurd interest rates etc. and is now being used recklessly to inflate property prices.

Sorry. Not good news. I'm a bit depressed. :angry:

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So today I went to an auction looking at buying some land.

I was amazed and really quite disgusted by what I saw. The lot I was interested in had a guide of £40k-£50k and went for £80k. Although there were a few 'not solds', several other went for multiples of the guide price.

I was just amazed by the sheer amount of money being thrown about. My money is earned in saved over the course of many years, but I have no doubt I was competing with mainly borrowed money - money that's effectively been stolen from savers by QE and absurd interest rates etc. and is now being used recklessly to inflate property prices.

Sorry. Not good news. I'm a bit depressed. :angry:

http://wiki.mises.org/wiki/Hyperinflation

They/we have devalued the earned currency.

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I was just amazed by the sheer amount of money being thrown about.

Plenty of folk over this last decade have penned their names to crushing debt obligations, ie mortgages, and even worse: equity withdrawal schemes!

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So today I went to an auction looking at buying some land.

I was amazed and really quite disgusted by what I saw. The lot I was interested in had a guide of £40k-£50k and went for £80k. Although there were a few 'not solds', several other went for multiples of the guide price.

I was just amazed by the sheer amount of money being thrown about. My money is earned in saved over the course of many years, but I have no doubt I was competing with mainly borrowed money - money that's effectively been stolen from savers by QE and absurd interest rates etc. and is now being used recklessly to inflate property prices.

Sorry. Not good news. I'm a bit depressed. :angry:

i went to one early 2007...it was manic...the lot i was interested in sold for silly money...12 months later a similar place sold for 25% less on the open market.

caveat emptor

Edited by TheCountOfNowhere

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So today I went to an auction looking at buying some land.

I was amazed and really quite disgusted by what I saw. The lot I was interested in had a guide of £40k-£50k and went for £80k. Although there were a few 'not solds', several other went for multiples of the guide price.

I was just amazed by the sheer amount of money being thrown about. My money is earned in saved over the course of many years, but I have no doubt I was competing with mainly borrowed money - money that's effectively been stolen from savers by QE and absurd interest rates etc. and is now being used recklessly to inflate property prices.

Sorry. Not good news. I'm a bit depressed. :angry:

What was the size of the plot, Was it agricultural, recreational or for development ?

6 acres with water and electricity and a roadside gate could easily go for £80K around me for recreational use if there were two determined bidders. Its agricultural value would be around £30k so long as its not steeply sloping woodland, which would be around £12k

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The guide price it there to get bidding started. Watch a few more auctions and get a better feel for how properties are priced and how much they go for.

I haven't been to an auction but I've noticed that the final selling price is usually a lot more than the quide price. There are a few things to be aware of. There is 'bidding off the wall' where the auctioneer pretends to be taking bids of someone who doesn't even exist to push the price up. And, of course, there could be 'shills' who are working for the seller to deliberately bid the price up. I don't know how you can tell them from real bidders though. :blink:

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What was the size of the plot, Was it agricultural, recreational or for development ?

6 acres with water and electricity and a roadside gate could easily go for £80K around me for recreational use if there were two determined bidders. Its agricultural value would be around £30k so long as its not steeply sloping woodland, which would be around £12k

7.5 acres of sloping pasture and woodland, deep in the Surrey greenbelt, nestled along the picturesque banks of the M25 ;)

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7.5 acres of sloping pasture and woodland, deep in the Surrey greenbelt, nestled along the picturesque banks of the M25 ;)

Best left for fools to buy who are easily parted from their money, unless you could buy it, hold it and then sell it to Tescos or some other supermarket for retail development.

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I am keeping an eye out for a small 0.25 acre plot anywhere between Bristol and Highbridge, I haven't found one yet! It's crazy considering the millions of acres of land there.

Build plot may I add.

Edited by Gone to Ireland.

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I have been wondering about this. Do we think there is a bubble in agricultural land prices too? They certainly seem to have taken off but I'm not well equated enough with the fundamentals to know whether or not this is justified by similar increases in average earnings per acre?

price-increase-and-price-gap-uk-farmland-r.jpg

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i went to one early 2007...it was manic...the lot i was interested in sold for silly money...12 months later a similar place sold for 25% less on the open market.

caveat emptor

2007 was manic! I was offered a job "elsewhere", and I sold up! It was easy to shift! I couldn't believe my luck, and luck it was! I can't make any claims for economic prediction, or astute financial planning. :blink:

It appears "mania" may be back...

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2007 was manic! I was offered a job "elsewhere", and I sold up! It was easy to shift! I couldn't believe my luck, and luck it was! I can't make any claims for economic prediction, or astute financial planning. :blink:

It appears "mania" may be back...

I sold in 2007 as well through pure luck. It really was totally manic then, even up here in the North. We had two lots of gazumpers at a late stage but refused them both - and they got really pushy :ph34r:

Edited by oldsport

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I have been wondering about this. Do we think there is a bubble in agricultural land prices too? They certainly seem to have taken off but I'm not well equated enough with the fundamentals to know whether or not this is justified by similar increases in average earnings per acre?

Quite possibly. There has been lots of talk of rich foreginers buying up huge amounts of UK farmland.

The graph you post is interesting as it shows land should be around £5k per acre. Yesterday's lot went for almost £11k an acre and thats land right next to the busiest motorway in the country.

Having slept on it, I'm actually glad I didnt 'win' it. I had wanted to grow a cider orchard as a hobby/second income project but I'm not sure if the pollution may have made any produce unfit for human consumption.

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What was the size of the plot, Was it agricultural, recreational or for development ?

6 acres with water and electricity and a roadside gate could easily go for £80K around me for recreational use if there were two determined bidders. Its agricultural value would be around £30k so long as its not steeply sloping woodland, which would be around £12k

Where can you find agricultural land and even better woodland like you mention for sale?Are there sites etc?.Iv always been interested in buying a small woodland or wild patch.Not to make any money or anything,simply to enjoy and look after.

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Where can you find agricultural land and even better woodland like you mention for sale?Are there sites etc?.Iv always been interested in buying a small woodland or wild patch.Not to make any money or anything,simply to enjoy and look after.

http://www.woodlands.co.uk/

But auctions would be the best bet.

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I sold in 2007 as well through pure luck. It really was totally manic then, even up here in the North. We had two lots of gazumpers at a late stage but refused them both - and they got really pushy :ph34r:

I sold in 2007 and it was also luck....in the shires though it took me 12months to find an buyer and had to drop asking price and was so relieved to get out...then it all collapsed and was even happier to get out.

The people who bought my house sold it early last your for at least a £50/60K loss. It took them 3 years to sell it !!!!

If they've had waited 9 months they could now be asking 100K more than their buying price rolleyes.gif

Caveat emptor.

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Where can you find agricultural land and even better woodland like you mention for sale?Are there sites etc?.Iv always been interested in buying a small woodland or wild patch.Not to make any money or anything,simply to enjoy and look after.

Rightmove, primelocation, uklandandfarms etc..

Its not easy to find land and most of its overpriced. I have a feeling most land is traded by agricultural types outside of the open market.

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I sold in 2007 and it was also luck....in the shires though it took me 12months to find an buyer and had to drop asking price and was so relieved to get out...then it all collapsed and was even happier to get out.

The people who bought my house sold it early last your for at least a £50/60K loss. It took them 3 years to sell it !!!!

If they've had waited 9 months they could now be asking 100K more than their buying price rolleyes.gif

Caveat emptor.

So you are a net beneficiary of HPI and just annoyed you haven't been able to short the market? :P

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7.5 acres of sloping pasture and woodland, deep in the Surrey greenbelt, nestled along the picturesque banks of the M25 ;)

What would have been your plans for this large plot of greenbelt land, if you had bought it at the sort of price you were hoping for?

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Quite possibly. There has been lots of talk of rich foreginers buying up huge amounts of UK farmland.

The graph you post is interesting as it shows land should be around £5k per acre. Yesterday's lot went for almost £11k an acre and thats land right next to the busiest motorway in the country.

Having slept on it, I'm actually glad I didnt 'win' it. I had wanted to grow a cider orchard as a hobby/second income project but I'm not sure if the pollution may have made any produce unfit for human consumption.

I think the price difference is because the graph shows an average for the entire UK and more southerly land probably costs more, either because slightly higher temperatures improve yield or because sentiment is being pumped up by the surrounding housing bubble. I suspect smaller land parcels are more effected by the latter as they would most likely be bought for recreational / hobby / speculative development use by people whose appreciation of land values are largely based on house prices. Therefore they currently command a higher price per acre than larger plots but might significantly drop in value in a HPC?

If you do continue looking for land for this purpose there are things that can be done to help reduce how much pollution reaches your main crop from the road, for instance a buffer zone of birch trees can provide a useful firewood crop and also capture airborne particulate pollution which is then washed off by later rainfall: http://www.deepdyve....oral-rVapWXsml6 This principle could be extended to some larger tree species if required (depending on leaf type) and be bolstered by ground level species. I'm given to understand that reeds and mushrooms can provide fairly effective filtering of polluted run off, for instance, although they might need to be salt tolerant varieties to be able to cope with winter gritting.

Edit: typo

Edited by Lo-fi

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So today I went to an auction looking at buying some land.

I was amazed and really quite disgusted by what I saw. The lot I was interested in had a guide of £40k-£50k and went for £80k. Although there were a few 'not solds', several other went for multiples of the guide price.

I was just amazed by the sheer amount of money being thrown about. My money is earned in saved over the course of many years, but I have no doubt I was competing with mainly borrowed money - money that's effectively been stolen from savers by QE and absurd interest rates etc. and is now being used recklessly to inflate property prices.

Sorry. Not good news. I'm a bit depressed. :angry:

Sympathise 100%.

When you say "borrowed money" -- what it actually is, of course, is one or more

PREDATORY LIAR LOANS

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Do we think there is a bubble in agricultural land prices too?

Hell yes !! Over £8k / acre around here (Northamptonshire / Warwickshire) for more or less any sort of agricultural land. I have heard anecdotaly from a reliable source of one farmer, flush with windfarm money, bidding £15k / acre on a 100+ acre farm.

I think it's a combination of a few good years on livestock and especially arable sale prices leading to optimism in the industry, very cheap borrowing (agricultural loans are against land, so attract very low rates), plus institutional investors buying farm land as a safe bet in today's turbulent world.

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There is 'bidding off the wall' where the auctioneer pretends to be taking bids of someone who doesn't even exist to push the price up. And, of course, there could be 'shills' who are working for the seller to deliberately bid the price up. I don't know how you can tell them from real bidders though. :blink:

In most circles this is known as fraud but so long as it keeps house prices up a blind eye seems to be turned. If I fell victim to this I'd be tempted to sue. This is what should happen to these auctioneers. http://www.dailymail.co.uk/sciencetech/article-1292179/eBay-seller-fined-bidding-auctions-boost-price.html

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