When to use Yellow Apricot |
YELLOW APRICOT WORKING FOR HOUSING ASSOCIATIONS
Housing Associations may wish to sell properties they own to "balance their budget" or for other reasons such as to sell uninhabitable properties in the hope that the buyer will invest his/her own money to bring them up to a habitable state. In many cases the reason for the sale may be to offload excess properties to direct cash to other projects.
Yellow Apricot Auctions attract developers and private individuals from a wide geographical field, looking for exactly these kind of properties. With Yellow Apricot, there is no delay in the sale as the sale completes normally in 28 days. Most importantly the housing association is seen to be acting in its best interest by selling the property at open market value, so there can be no arguments that the property was sold off too cheaply.
Example:
Beryllium Housing Association has let out a 3 bed house in a prime location to a family for the last 5 years who have now moved out. It is worth approximately £120000. The Housing Association have seen a development opportunity in a forthcoming Yellow Apricot Auction where the property sought can be split into 4 flats yielding a profit of £150000. The cost of the property is £300000 and the £120000 for the existing property will come in handy to help finance the new project.
There is still time to put the property belonging to Beryllium Housing association into the next Yellow Apricot Auction so a decision is made to do this.
At the Auction, the property owned by Beryllium Housing Association sells for £138000 (£18000 above the anticipated price) and the Housing Association ends up paying £345000 for the new property.
Cash is raised quickly so that Beryllium Housing Association do not miss out on the development opportunity and although they end up paying £45000 more than expected for the new property, there is still a tidy profit to be made.
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