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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valuation is within 5% of original desktop price, the investor is expected to continue as intended or declare they have withdrawn their interest from that particular property opportunity allowing it to be immediately relisted to the open market.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.
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