The sale which included 50% of the catalogue being distressed residential properties raised a total of £51.3m.
From a residential investors point of view the figures were interesting in that they highlight the yields being paid in the auction rooms by residential investors with cash to invest.
The average regulated rent property was sold at a 4.3% yield, whilst the average Assured Shorthold Tenancy investment achieved a gross yield of 8.1%.
Property Hawk has always advised landlords that a gross figure of 8%+ is a good starting point for a long-term income producing investment.
Commenting on the sale, Auctioneer and Partner, Gary Murphy said afterwards":
"The room was populated by serious buyers with cash to invest. Gone are the over-funded amateurs. These results reflect real values driven largely by equity. If you're going to put your own money at risk, rather than the banks, you need to be confident in your buying decisions. That market confidence was widely demonstrated yesterday".
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Property at auction is often there for a reason - it can't sell on the open market. Buyers must be careful that they are in fact buying a good property and not just an overpriced dud!
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