BMV Property
Pre-Launch Advanced Notification ~ London East PDF Print E-mail
Blog and News - BMV Property
Written by John Angeletta   
Monday, 12 July 2010 14:10
Pre-Launch Advanced Notification ~ London East

Sixteen BMV Properties For Individual Purchase ...

1, 2 & 3 bed Apartments & Houses ...

From £165,000 to £225,000 ...
 
RICS Valued ...

For Sale At ...

15% Below Market Value plus 3% Fees ...

Cash Purchase ...

   OR

Packaged if required at £3,845 ...
 
Register your pre-launch interest ... 

Call John on 01275-846662 or,
 
Email This e-mail address is being protected from spambots. You need JavaScript enabled to view it


 
Landlords’ Portfolio Values Rise 6.1% PDF Print E-mail
Blog and News - BMV Property
Written by John Angeletta   
Wednesday, 26 May 2010 11:56
STOP PRESS STOP PRESS STOP PRESS

Landlords’ Portfolio Values Rise 6.1%

The average value of BTL landlords’ portfolios increased by more than 6% in the first quarter of 2010, according to Paragon Mortgages.

Unsurprisingly, street-wise Landlords have been adding property to their portfolios during this good-hunting period including replacing existing stock with properties of a greater value.

The Paragon report also revealed that landlords expect the average value of their portfolios to increase further Q1/2011 over Q1/2010 (+1.2%).

John Heron, MD of Paragon mortgages, said, Confidence amongst the landlord community has grown in recent months and that is reflected in portfolio valuations. On the whole, house prices have been rising since the middle of last year and we know that landlords have taken advantage of a more fluid housing market to add properties to their portfolios. Looking forward, more landlords believe that portfolio values will rise than fall, but the vast majority are unclear about which way house prices will move. There are a number of variables that will influence house price movement, but access to mortgage finance for the market as a whole will be key.
 
According to the National Landlords Association, confidence is at its highest since 2007.

What We say ~ Below Market Value acquisition is crucial to the landlord/investor adding property for their portfolio with substantial day-one equity. At the beginning of this year, we predicted an increase in typical net investment fees due to the falling availability of good BMV property and the increased costs incurred in finding suitable stock. Our average BMV total net *fees however, remains under £7,000 with some current listings even under £5,000. And, we only list property with rental yields of at least 6%, but averaging out about 8%, providing a robust buffer against rises in BTL mortgage interest rates. As demand for rental property must increase due to not enough rentable housing stock and the increasing numbers of frustrated, wannabe First-Time Buyer, any astute landlord/investor will be seeking more quality property acquisition, staying closely in touch with the natural uplift expected in market rents over the next year or so. 

See www.bmvpropertyinvestmentdeals.co.uk for latest property plus Blog-n-News about current market trends and issues.

*Inclusive of valuation, legal, finder and mortgage broker fees.
 
Why Buy Below Market Value Property? PDF Print E-mail
Blog and News - BMV Property
Written by John Angeletta   
Friday, 26 February 2010 16:12
Why Buy Below Market Value Property?

Whether you are buying-to-let or buying-to-live, the BMV opportunity is a singularly spectacular way of acquiring property for usually no more than the cost of professional fees.  No other investment will typically allow favourable gearing of 20:1 using someone else's money plus attract tax relief on the interest!

Unlike High Street Estate Agents ~ who deal in current market value property, or Auction Houses ~ who deal in cash only purchases, the BMV Marketplace has the double-advantage of allowing low-cost investment at below market value prices already agreed with the vendor.  

The very purpose of a BMV purchase makes it win/win. The seller acquires a rapid sale and the buyer enjoys an investment that is immediately one-third more valuable than paid for it.   

Typical purchase prices illustrated on our website are three-quarters of current market value.  This figure to be varified by a member of the Royal Institute of Chartered Surveyors who is instructed by the mortgage lender.  

What About Down Valuations?

Whilst RICS members are professionally qualified, valuing a property is not a precise science and some variance may occur. Where a RICS estimate down-values a property greater than 5% of the original desktop price, the listing agent will attempt to renegotiate the purchase price or withdrew the property from the listings. If the latter, initial costs to you should be fully refundable.

Where a RICS valuation is within 5% of original desktop price, the investor is expected to continue as intended or declare they have withdrawn their interest from that particular property opportunity allowing it to be immediately relisted to the open market.  Initial costs, in this case, are not normally refundable.

Trading within BMV property by necessity requires a prompt transaction.  It does not allow the luxury of time for heavy re-negotiation with a vendor.

In a Nutshell ~ Most of our listed BMV properties are key-ready for occupancy: some even come with a tenant.  If you have to invest in repairs, you should still enjoy a typical saving of 25% below market value with the condition of the property taken into account.
 
Tenancy Deposit Protection Is Working PDF Print E-mail
Blog and News - BMV Property
Written by John Angeletta   
Thursday, 04 February 2010 14:00
Tenancy Deposit Protection Is Working

Tenancy Deposit Protection legislation is working despite current concerns about price increases, according to the National Landlords Association (NLA), the leading representative body for private-residential landlords in the UK.

David Salisbury, Chairman, NLA, said, “The NLA believes we need to be careful not to let the current discussions about TDS [tenancy deposit scheme] price increases detract from the principle purpose of tenancy deposit protection: offering legal protection for tenants where, in the small number of cases, landlords wrongly withhold all or part of their deposit.

“The NLA welcomes recent comments from the Government that it is happy with the performance and high standards demonstrated by the approved tenancy deposit protection schemes. All-in-all, tenancy deposit protection legislation has proven to be a success and current issues must not alter this message.

“Today, I have written to TDS seeking clarification about the likely impact of their price increases on landlords and the NLA will communicate their response in due course. It is quite clear that landlords should not be expected to foot the bill of these price increases and we will be monitoring the situation carefully. For the NLA the interests of landlords must be safeguarded.”

For further information please contact: 

Steven Hilton
Media Relations Manager, NLA
T: 020 7840 8906
M: 07508 031 084
E: This e-mail address is being protected from spambots. You need JavaScript enabled to view it


 
HERE ARE OUR LATEST PROPERTY DEALS PDF Print E-mail
Blog and News - BMV Property
Written by Paul Cobb   
Tuesday, 12 January 2010 22:16

Here is a summary of all our currently available property deals.

Please click on the blue links to view details of a particular property.

Lochwood, Nr Glasgow, Lanarkshire Valuation: £89,950 | Price: £67,462 | Net investment is £5,049
Blackburn, Lancashire Valuation: £57,000 | Price: £45,600 | Net investment is £4,645
Muirkirk, Nr Cumnock, Ayrshire Valuation: £65,000 | Price: £48,750 | Net investment is £5,745
Bow, London, London Borough Council Valuation: £170,000 | Price: £144,500 | Net investment is £14,115
Pensnett, Nr Dudley, West Midlands Valuation: £170,000 | Price: £132,600 | Net investment is £14,573
Crowle, Nr Scunthorpe, South Humberside Valuation: £124,999 | Price: £89,999 | Net investment is £4,300
Crowle, Nr Scunthorpe, South Humberside Valuation: £62,499 | Price: £46,874 | Net investment is £2,275
Oldham, Greater Manchester Valuation: £65,000 | Price: £52,000 | Net investment is £4,645
Rotherham, South Yorkshire Valuation: £89,950 | Price: £67,462 | Net investment is £5,049
Burton upon Trent, Staffordshire Valuation: £78,000 | Price: £58,500 | Net investment is £4,745
Shildon, Co. Durham Valuation: £57,000 | Price: £39,950 | Net investment is £41,100
Ashton in Makerfield, Nr Wigan, Cheshire Valuation: £124,950 | Price: £99,960 | Net investment is £5,049
Crowle, Nr Scunthorpe, South Humberside Valuation: £62,499 | Price: £46,874 | Net investment is £2,275
Port Talbot, Glamorgan Valuation: £120,000 | Price: £90,000 | Net investment is £5,049
Longton, Nr Stoke-on-Trent, Staffordshire Valuation: £73,000 | Price: £58,400 | Net investment is £5,049
Little Lever, Bolton, Lancashire Valuation: £99,950 | Price: £74,962 | Net investment is £5,049
Peckham, London, London Borough Council Valuation: £200,000 | Price: £170,000 | Net investment is £18,595
Golborne, Nr Warrington, Cheshire Valuation: £89,000 | Price: £71,200 | Net investment is £5,049
Leamore, Walsall, West Midlands Valuation: £109,950 | Price: £82,464 | Net investment is £5,049
Newham, London, London Borough Council Valuation: £124,995 | Price: £106,245 | Net investment is £11,999
Little Horton, Bradford, North Yorkshire Valuation: £65,000 | Price: £48,750 | Net investment is £6,890
Haslington, Nr Accrington, Lancashire Valuation: £90,000 | Price: £72,000 | Net investment is £4,645



 
BMV Changes 2010 PDF Print E-mail
Blog and News - BMV Property
Written by John Angeletta   
Friday, 08 January 2010 15:58
Below Market Value Changes for 2010 ...

This year continues to present an opportunity to expand (or begin) our property portfolio.  But, recent changes in the BMV marketplace need to be taken into consideration ... so, what are they?

1. Stamp Duty Land Tax (SDLT)

During 2009, you and I could enjoy buying property up to £175,000 without the additional expense of SDLT.  The Chancellor however, withdrew this 'concession' at the end of last year, which means any new purchase over £125,000 now carries tax on the whole purchase price i.e. £125-250,000 at 1%, £250-500,000 at 3% and, 4% over half-a-million. 

2. Below Value Market (BMV) Amounts

Last year it was common to obtain a property of 25% BMV or better. This year, many pundits report that the UK is over the worst of the recession, though they cover their professional rear-end by saying property prices will probably not grow by much this year. Public confidence too, appears to be returning in the UK, albeit slowly.  

We BMV'ers however, will have noticed a steady increase in cash investment required to purchase: last year it was typically £4-5,000; this year it appears to be £8-9,000.  This is due to to several events including: a) increased finders fees as the better propertes become more difficult to find and negotiate; b) on-going difficulties obtaining competitive funding from lenders; and, c) further regulation biting into the Sale & Rent Back market. 

3. Loan To Value (LTV) & Interest Rates

This week saw the Bank of England maintain its 0.5% Bank Base Rate (BBR). Pundits predict this rate will be with us until the end of this year. Though this umprecidented BBR has been with us for several months now, generally speaking, lenders have not passed on the benefits to you and I unless we accepted a LTV of 60% or less: not especially attractive for BMV's.  For LTV at or over 75%, interest rates were typically 5% +/-. Good old 90% LTV was now only a dream making remortgaging existing high LTV mortgages next to impossible.

Last week however, we did see one major lender take the market by the scruff, re-launching themselves at rather more competitive interest rates for 75% LTV.  We hope this pro-activity will draw more lenders into the competitive arena for the good of you, I and the overall housing market.

4. Subject To Status

Higher LTV together with lower interest rates have got to be good news for all of us but the catch is the borrower has to be squeakier and cleaner than ever. Lenders are already seeking more revealing data about borrowers including proof of deposit.

5. Rental Calculations

BMV purchasing is encompassed within Buy-To-Let (BTL) lender rules.  To obtain a mortgage nowadays, borrowers must prove an income of at least £25,000pa (can be a combined income) but, it is the rental return that determines maximum LTV borrowing. 

6. Finders Fees

Unless you want to spend weeks learning to be a property scout and hundreds of hours trying to locate good BMV properties yourself, it makes sense to use those who make it their profession.  In this way your focus is on the finished cake, not the baking.
 
Finders fees during last year were around £2,000. This year they are nearer £4,000.  We anticipate this will be an on-going trend for a while. 

IN A NUTSHELL ...

If you don't want Stamp Duty Land Tax, stay under £125,000 valuation!
If you don't want to pay any deposit, stay 25% Below Market Value Investment or better!
If you want maximum Loan To Value on a £124,999 purchase, make sure the rent exceeds £390pcm (assuming a lending rate of 5%)!
If you want the transaction to go smoothly, keep 25% deposit in your deposit account!
If you want suitable property quickly, stick with a reputable source!
 
BMV Deals Increasing in Volume PDF Print E-mail
Blog and News - BMV Property
Written by John Angeletta   
Tuesday, 24 February 2009 00:00

We are very excited about the increasing volume of below market value deals becoming available for our investors.
 
Updated within minutes our website details NEW properties and relistings coming to our attention placing you in an excellent position to make a considered decision (choose your property and click on ‘MORE DETAILS’ for full information).
 
See our Latest Deals Here
 
Whether you are looking for a great property investment with excess rental income and very little investment costs (often only c. £3,000) to start or add to your portfolio or are looking for somewhere to buy and live for yourself or another (e.g. children in University Towns), take a look at the above website.
 
When you ‘Subscribe’ you receive an automatic email of all new Property Alert releases.
When you ‘Register SMS’ (under development) you will automatically receive a TEXT ALERT to your mobile.
 
We will need a ‘Reservation Fee of £250’ to secure a booking of your chosen property, which will always be used to obtain a property for you even if your initial choice changes.
We will even instruct purchase on your behalf with your prior written proxy permission (subject to receipt of your Reservation Fee per property).
 
For your advantage we have included ‘map search’ and ‘information search’ in TOOLS beneath the FINANCIAL DETAILS of a selected property.  As a registered member you may also privately shortlist ‘FAVOURITE PROPERTIES’ for your future reference.
 
REMEMBER TO KEEP A REGULAR EYE ON THE WEBSITE AS SOME PROPERTIES BECOME RELISTED.

Have Fun!