Below Market Value Property

If you have been contemplating buying a below market value property for some time, below are 10 reasons why you should invest in property.

Property prices are currently lower than they were at their peak in 2007

Prices are lower at the moment. If you buy a bmv property you could get it up to 30% below the open market price. Even if the property market is stagnant over the next 12 months you have still go a great deal.

Property prices are creeping back up, which could suggest that demand is increasing and confidence is returning. Although, I do have to caveat this by saying that a full recovery is still sometime away.

If you are a cash buyer and are tired of low interest rates on your savings account, property does offer a good investment alternative. I have no doubt that property prices will surpass those seen in the summer of 2007, by investing now you put yourself in a good position to take advantage when that time comes. In the meantime you can enjoy the rental returns.

Demand for rental property is high at the moment because a lot of people are either waiting to buy or cannot obtain a mortgage. You can take advantage of this opportunity and purchase a buy to let property at below market value.

Property Banker specialise in sourcing property which is below market value. We have an extensive list of properties from all over the UK. If you would like to see our list properties, please fill in the form on our homepage.

Many believe that investing in below market value property is only for seasoned investors. However, I do not believe this is true. My opinion is that as long as you can afford it you can do it. If you are a first time property investor bmv property is the best property investment opportunity for everyday investors.

OK, so the economy is not as strong as it once was and the property market isn’t exactly buoyant. But you can still find great BMV deals if you know how to source them. The beauty of investing in this kind of property is that you buy it at as much as 30% below the open market price.

But why are they so cheap? I hear you ask, there could be many reasons why. But sometimes it is because the owner has to move quickly or they have recently been made unemployed and can’t keep up the mortgage re-payments.

In today’s climate you are looking for the best long term investment you can. Most property investors are looking for buy to let investments. You can no longer rely on making money from price increases, instead solid investments with good rental returns are the main focus.

The best property investment opportunities for first time property investors are below market value two to three bed houses as opposed to flats, in my opinion. This is because flats are usually leasehold, which means you don’t own the land and you generally have to pay ground rent and service charges. You also share the responsibility of the maintenance of the block with other leaseholders and have to deal with property management companies, which can be very frustrating.

Buying a 2-3 bed house avoids most of these hazards they are generally freehold and you can normally source them with a garden and drive, which is ideal for small families, couples and sharers. In my experience the tenants generally stay longer in these properties. So if you are looking for the best property investment. Find a house with good transport and local amenity links.

Being a BMV property investor at the moment is not an easy job. There is a lot of uncertainty in the market and many contrasting views making the whole situation quite confusing depending on where you get your information.

The main contrast in views at the moment are surrounding whether prices will rise early next year or fall. Some say that we have seen consistent rises over the last several months and there is no reason why they should not continue, with the caveat that the Christmas season is notoriously slow so the rise may not be as large. On the other hand others are saying that the current house price rises are being fuelled by lack of supply in an already poor market.

However there is one point that most of the experts agree on and that is the UK property market is not going to recover any time soon. They seem to all agree that it is going to be a long hard slog. The future of the property market for not only BMV property investors but for everyone else rests on rise or fall of interest and unemployment rates as well the financial markets stability.

Large retailers are still going bust which doesn’t help matters. The other day I heard about Borders going into administration, which is a pity as it is one of my favourite shops. Not only this many fear that government might have to cut jobs in the public sector and apply for an IMF loan, which really is hitting a low and will no doubt affect public sentiment.