Another Excellent Comparable. Why Pay 67% More From Estate Agents?
Wednesday 26th March 2025
I've had a busy and productive couple of weeks viewing auction properties with mentees from the UK, Italy, South Africa, Ireland and the US. It's a bit like the United Nations at Tuna Fish Property and further reinforces the fact that UK real estate is a global phenomenon and is perceived correctly as a safe haven investment destination.
I was reminded yesterday when viewing properties with a mentee from the US of the enormous difference between retail and wholesale property investment. We drove past a property we acquired just a few months ago 'prior to auction.' Although the EPC stated the property was an E, we knew from our own research it was a C. The seller hadn't updated the EPC, a mistake that would have narrowed the market, but in our favour.
With a new roof, new external insulation, new electrics, a new boiler and an immaculate inside with great tenants, it was a steal at £75,000 in an excellent rental area. At market rents, the yield is 12%.
We stopped the car when I saw another property for sale on the road with a local estate agent. It doesn't have our EPC-friendly attributes, but it is on the market at offers over £125,000, which is 67% higher than our auction property.
Those who have read my book or read my weekly newsletter will note that this is typical, not unusual. Serious investors buy distressed assets, avoid the retail market, and never look back.
