Christina Dejonge’s journey from a lockdown pastime to establishing a successful buy-to-let business is a tale of determination and savvy investing. Starting with a derelict property she humorously describes as a “crack den,” she has since grown a robust portfolio of rental homes. The Telegraph showed how she did it and what you can learn from her experience.
A Lucrative Leap into Auctions
During the 2020 lockdown, like many, Christina Dejonge found herself browsing property auction sites out of curiosity. However, what started as a casual browsing soon turned into a serious investment opportunity. Spotting the potential in derelict properties that were overlooked and undervalued, she took a bold step into the real estate market with no prior experience in property management.
Her first purchase near Manchester’s Etihad Stadium was far from promising, needing significant cosmetic work to be deemed livable. Yet, this did not deter her. Instead, it was the beginning of what would become a thriving buy-to-let empire, now boasting 11 properties with varying sizes from two to five bedrooms—all acquired at auctions.
The Appeal of Auctions
The advantage of buying properties at auction, as Christina quickly discovered, is the speed of the process compared to traditional property buying methods. Auctions eliminate the long waiting periods and the risk of being gazumped—where a seller accepts a higher offer after agreeing to a deal. Once the auctioneer’s gavel falls, the deal is legally binding for both parties, providing a certainty that is rare in standard real estate transactions.
Financing the Deals
One of the major hurdles for auction buyers is the short time frame between winning a bid and needing to complete the sale. Traditional mortgages often cannot be processed quickly enough, leading many, including Christina, to opt for bridging loans. These short-term loans fill the gap until a more permanent, traditional mortgage can be arranged post-renovation and tenant placement.
Christina worked closely with a mortgage broker and utilised financing options from Together, a lender, to manage her property acquisitions. This strategic financial planning allowed her to renovate and rent out properties efficiently, turning a quick profit on her initial investments and funding subsequent ones.
Running a Family Business
Christina now manages her property business, E4 Property LTD, full-time alongside her husband. The business not only supports her family through a modest salary and dividends but also covers all landlord expenses, such as repairs and mortgage costs, through the rental income generated.
Despite the potential for high returns, Christina admits that property auctions are not for everyone. They require a certain tenacity and a willingness to take on projects that many might find daunting. Her properties, often in various states of dilapidation, require a keen eye and a hands-on approach to turn them around quickly—usually within four weeks.
Local Knowledge as a Key Tool
Strategically, Christina and her husband focus their investments in the Greater Manchester area, particularly Middleton, due to its potential for value growth. Utilising her intimate knowledge of her hometown, Christina is adept at identifying properties that, despite their initial appearance, hold potential for significant appreciation in value.
Practical Advice for Aspiring Investors
Christina’s top tips for anyone considering the auction route include:
- Financial Planning: Understand your financial limits and stick to your budget, regardless of how appealing an over-budget property might seem.
- Thorough Research: Always investigate the property fully before bidding. This includes studying the legal pack provided by the auctioneer, visiting the property, and ideally, conducting a survey to avoid any unforeseen issues.
- Emotional Discipline: It’s crucial to remain disciplined and not let emotions override financial judgments.
Future Ambitions
Looking ahead, Christina and her husband aim to continue growing their portfolio, with plans to add two new properties each year. They remain active in seeking new investment opportunities within the Middleton area.
Christina’s story is not just about financial gain but also the fulfillment that comes from refurbishing dilapidated properties and turning them into homes where families can thrive—a testament to the transformative power of dedication and strategic investment.