A Birmingham flat is being sold at a property auction for a guide price of between £15,000 and £19,000, and this could be the cheapest flat you can currently buy.
The flat is located in Handsworth and should sell for a figure at around 10% of the average house price, The Sun reported in October 2017.
Another property in the same auction is a three-bedroom terraced house in Walsall, which is expected to sell for £19,000.
These two properties are amongst hundreds for sale today at SDL Bigwood Auctioneers. Gurpreet Bassi, the head of SDL auctions, said:
“We believe this Birmingham property is the lowest priced flat currently on sale in the West Midlands.
“This would make an excellent opportunity either as an investment purchase or as a first home, and we expect strong interest at our auction.”
The major drawback of these properties is that they are usually in poor condition and require several thousands of pounds spent on them to make them habitable. Even adding on the cost of refurbishments, however, the properties could be a good investment.
If buyers do not have the cash to purchase the properties, they may find it difficult to get a mortgage on them as most mortgage companies will not lend for properties classed as uninhabitable. A bridging loan can be used to both purchase and refurbish derelict or semi-derelict property. After refurbishment work, the property should qualify for a standard mortgage and the bridging loan can be repaid.