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.
I would never suggest to anyone that they should use credit cards to buy a bmv property even if it was the deal of the century. But I did read a news piece on BBC News today that took me back a few years.
Back in the day when house prices were soaring and you were assured to make a killing if you bought in the right location, especially in London. I remember several of my friends buying their first property using credit cards. I thought they were mad at the time. But they assured me that it was a sound strategy, which was sure not to backfire.
At this time I also recount several people doing the same when they purchased bmv properties as well. Some of these deals only required a few thousand down so they chose to stick it on the credit card.
On reflection this really epitomises the kind of reckless credit use that got us into the mess we are currently experiencing. Back then the ever increasing prices spiralling out of control fuelled greed and arrogance, of course this persisted and led to many bankers trading in mortgages that could never be paid off.
As a bmv property investor I value money, which is why I choose to invest at all. But at the same time you need to be able to think with a realistic and clear head.
In the past many property investors had a choice. They could either buy a bmv property and flip it making a quick profit in the process or hold on and let it. Nowadays, it’s a different story. You can’t rely on increasing values to support your bottom line, you have to think long term.
Some bmv property investors are against becoming landlords and generally source property they can quickly sell on. I on the other hand have a different view. I enjoy building a strong portfolio and watching the rent pour in at the beginning of each month. Of course there are drawbacks, but nothing is ever perfect.
In times like these it pays to have a long term strategy. I prefer to be an investor rather than a trader of properties. There is nothing wrong with flipping properties, especially, if you buy below market value. But to me building a tangible property investment portfolio for a future nest egg has always sounded more appealing than pension fund. I’ve heard of too many nightmare stories of old couples losing their entire life savings over night to want to go down that route.
Even though the property market is down at the moment there is plenty of opportunity out there to grab a really good BMV deal. We have lots of great below market value properties on our books for more information; please get in contact with one of our advisers.
Finding BMV property in the UK is a difficult task unless you are dealing with a reputable company, which invests heavily in marketing and has a great deal of experience on how to find and negotiate great below market value deals.
Property Banker has spent years perfecting its knowledge of the property market and invests heavily in marketing. We have lots and lots of homeowners who need immediate sales and are willing to sell quickly.
It’s an ideal time to invest at the moment. Many experts predict that the property market has experienced the worst falls of this recession back in 2008 and expect prices to stabilise and even increase in 2010. If you have a large enough deposit to buy a property you can make a better return on your money than by just leaving it in a savings account. Interest rates are so low at the moment making it an ideal time to borrow and not so good time to keep money in a savings account.
If you are thinking about buying a property you should consider the below beforehand.
Have you done your research? Make sure you have an idea of where you want to buy and why. There are plenty sites such as Nethouseprices and Upmystreet to do help you with your research. It’s very important at the moment as performance of the UK property market is quite regionalised. For more information on the best areas to buy speak to one of our expert BMV property advisers.
Also make sure you have your deposit organised and it’s easy to access. If you find a good deal you will want to be able to move fast so you don’t miss out.
