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Seaside apartment sells for £73,000 after £1 auction
The Sea Breeze apartment in Devon experienced intense bidding, ending far above its starting price.
A two-bedroom apartment in Devon attracted massive bidding after a low starting price.
Seaside property sells for shocking price after £1 auction
A two-bedroom seaside apartment in Paignton, Devon, has been sold for an astonishing £73,000 after being listed for only £1. The property, named Sea Breeze, drew significant interest during its auction, with ninety bids from fifteen different bidders. This former fixer-upper, located just a minute's walk from the beach, is in the final stages of refurbishment but still requires considerable work. Once complete, the property could potentially yield a rental income of around £35,000 per year according to Sean Roper of Paul Fosh Auctions, the company handling the sale. The allure of such a low starting price below that of a simple ice cream cone clearly sparked a competitive response among bidders, highlighting the intense interest in affordable seaside properties.
Key Takeaways
"This a great opportunity for an investor which won't break the bank in terms of expenditure to complete the refurbishment of the apartment."
Sean Roper highlights the investment potential of the Sea Breeze apartment.
"If a long term let is considered with the property refurbished to a similar high standard it is going to command a monthly rental in the region of £900-£1,000."
Roper discusses the possible rental income from the refurbished property.
The sale of Sea Breeze offers a unique snapshot of current real estate trends, where bidding wars can escalate quickly based on perceived value. As people look for investment opportunities in desirable locations, this auction exemplifies how low entry prices can attract attention and drive up final sale prices. Investors, especially, may see the potential not just for a renovated home but for a profitable rental option in a sought-after area. However, buyers should weigh the costs of renovation against potential returns more carefully, as the market can fluctuate rapidly based on economic conditions and property demand.
Highlights
- Seaside property sold for 73,000 times the initial auction price.
- A £1 auction starts a bidding frenzy for Sea Breeze.
- An investment gem or a renovation nightmare?
- Could Sea Breeze change the game for affordable properties?
Potential investor risks in property renovation
Investors should be cautious as the substantial costs of refurbishment may rise beyond initial estimates, impacting overall profitability.
As the demand for affordable properties grows, the lessons from this auction could influence future pricing strategies in similar markets.
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