First time investors braving the property auction

First time investors braving the property auction


The second and third quarters of 2009 have apparently brought a surge in interest from first time investors, according to property firm Assetz. 

As early as December last year, the group reported that seasoned, bulk investors were returning to the market, as distressed property prices showed good value when measured on rental returns.


However, it took until the beginning of summer 2009 for the first major wave of new investors to enter the fray and turn up to property auctions, as many people, disillusioned with poor savings rates and large losses on other investments, attempted to capitalise on remaining property bargains.


This sudden influx of cash-rich investors into the market has reportedly resulted in some measurable decreases in the discounts achievable at property auctions.


Stuart Law, Chief Executive of Assetz, said: “At the end of 2008, large-scale, professional, cash-rich investors recognised that distressed property prices had reached their lowest point. However, the majority of consumers were more cautious about the direction of the market.


“A lot of new investors, who have never invested in residential property before, are now entering the market with large deposits, as a result of the likes of Nationwide recording sustained house price growth. Many other investments have suffered very badly and we are seeing cash rich investors taking matters into their own hands.”

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