Below Market Value Property

Posts Tagged ‘below market value property’

Buying at Auction

Tuesday, February 23rd, 2010

If you are looking at purchasing a below market value property you may want to check out an auction. They can be found all over the country and all major towns and cities have auctions selling discount property. Buying a house this way can be done within 28 days, which is the primary draw of buying below market value property this way.

Research, research, research… - You can get a list of properties that will be coming up for auction at your local auction house. However, the discount property may not well be all that it seems so it is a good idea to give yourself plenty of time to research all the ins and outs of the property you are looking at buying.

What happens? - It is then a simple case of turning up on the right auction day and placing your bid, and hope that no one else is looking at the same building as you! You will often get people at auctions who want a house and are willing to pay whatever it costs, which means the property will likely sell for way above BMV status.

How do I pay? - The other important factor about buying a below market value property from an auction is the payment procedure. From the time that the auctioneer drops his gravel the purchaser of the discount property has 28 days to sort out payment or face paying severe monetary penalties. The majority of mortgage lenders will ask you to stump up 15% of the price so be prepared.

For more information on how a below market value property can benefit you, contact Property Banker and see how they can help.

Tags: below market value property, bmv deals, property investment
Posted in Buy Cheap Property | No Comments »

Buy to Let Investors Raising Rents

Tuesday, December 22nd, 2009

If you are a below market value property investor you will be interested to hear that according to the RICS, rents are expected to rise in the New Year after a clear drop in supply. This is supposedly due to the recent pick up in the housing market. The RICs went on to say that although there is positive sentiment in the market new instructions were at their lowest levels since records began in 1998.

This is a very different story compared to last year prices were falling fast and many people had to let their properties out because they could not acquire a sale. Many chartered surveyors in the North and London are reporting recent rent rises. Although supply is currently low demand for rental property has risen by 16% over the last three months, with demand for houses being as high as 22%, which is good news for BMV property investors.

For all of your BMV property investors the signs are strong. In the market today according to the RICs demand is outstripping demand, which makes it an ideal opportunity to raise rents. Renters no longer have the bargaining power they had several months ago. This is especially apparent in London and other areas barring the east.

If you are an aspiring landlord now might be the time to get your feet wet. Property prices are currently low with demand for rental property relatively high.

Tags: below market value property, bmv property
Posted in BMV Properties | No Comments »

Buy-to-let history

Friday, December 18th, 2009

Below market value property investors essentially buy properties to either flip and sell for a profit or invest and let out for the long term. Today I’m going to go over how the buy to let industry came to be here in the UK.

In 1988 the Housing Act was abolished making it easier for landlords to evict problem tenants, which made the buy to let investment far more attractive. Coincidentally the property crash of the early 90’s increased demand for rented property, which further propelled the industry forward. The phrase Buy-To-Let was introduced by ARLA (Association of Residential Letting Agents) in 1995.

The massive growth of the buy to let sector can be attributed to the volume of mortgage deals on offer and the opportunity for not only seasoned BMV property investors, but also amateurs as well. Many people since its inception have used property as a pension fund for later years. Others have chosen to build massive buy-to-let portfolios, quit their day jobs and go into it full time.

In the early to mid-noughties property investors managed to accumulate huge profits from price rises and rental income, but since the recession and the fall in the property market the game has changed and long term investment is the main focus. If you want to source and invest in property, BMV properties are the best way forward.

If you are interested in finding below market value property you can request our list of properties from our homepage.

Tags: below market value property, BMV Properties
Posted in BMV Properties | No Comments »

Common Buy to Let Mistakes

Thursday, December 17th, 2009

If you are a seasoned BMV property investor you have no doubt made some or all of these mistakes its all part of the learning curve. However, if you are new to game of investing in below market value property, you may be able to save yourself a lot of stress by reading the below.

Make a plan. Like any good business you will need to plan ahead in order to be a successful buy to let investor. Look at your goals and objectives, both short and long term. Where do you want source property and why? As the name suggests you want to be a buy to let investor. This means you will be looking at any property investments with the long term in mind. Especially due to the current economy you cannot rely on price increases to make your investment profitable. You need to make your money from rental income. So it’s really important that the rent covers at least 125% of the mortgage repayments.

When you are setting goals be realistic and not greedy. If you become greedy and try to build a portfolio too quickly you could loose everything, don’t over expose yourself. Sourcing property can be addictive but many have been burnt during the recession.

Get the right mortgage. This sounds obvious but many people don’t look at the whole market and up with a less than favourable mortgage. If you can, use sites like go compare, moneysupermarket and also find a good life insurance broker you can trust. You need someone who can look at the entire market. The key thing here is to do your homework and spend time looking around.

One of the most common mistakes is that people get too emotionally involved with their investment property. Think about your target market instead of what you would like and make sure you are accommodating their needs, after all you will not be living there.

If you are a BMV property investor you will no doubt be very profit focused so the above may come across as common sense. However, we all make mistakes the key is to try and learn from others before you make them yourself.

Tags: below market value property, bmv property
Posted in Buy Cheap Property | No Comments »

Buy To Let Houses

Thursday, December 10th, 2009

Below you will find a few buy to let investor tips to help you maximise your investment and manage your BMV property portfolio effectively.

You should always try to purchase buy to let houses which are new or newly renovated/re-decorated. No body wants to do DIY we’d all rather be busy looking for new properties or counting our riches from our property portfolio. You’ll save yourself a lot of time and stress.

If you are a serious investor leverage your money. If you have £100,000 to spend don’t just buy one property split your money and get a 50% mortgage and buy two instead.

If you do at some stage need to fit a new kitchen or bathroom go for something basic, hard wearing and cheap. Wasting money on buy to let properties will only eat into your profit. When you are re-decorating go for neutral middle of the road colours. When people rent they generally like cream, magnolia and white walls. My last tip is no smokers, they stain the curtains, walls and can potentially cause fires, so make sure you tell the letting agent and clearly state it on the tenancy agreement.

As a BMV property investor sourcing property which is not only a good investment but discounted up to 20-30% below the market value is a tough prospect. This is why specialist companies like Property Banker exist. We help investors like yourself find the best BMV property at the price you need and in the area you need.