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The Simple Math Of Below Market Value Acquisition! PDF Print E-mail
Blog and News - BMV Property
Written by John Angeletta   
Wednesday, 01 September 2010 14:47
The Simple Math Of Below Market Value Acquisition!

We reported earlier this month that the Royal Institute of Chartered Surveyors (RICS) revealed 13 out of 25 countries continue to show increases in distressed property sales. This means there is increasing opportunity to acquire BMV property in the UK with savings of 25% or more: that's £25,000 saved in every £100,000!

Lack of mortgage finance remains the challenge for many first time borrowers but interestingly enough not quite so for landlord/investors. RICS reported their Residential Lettings Survey shows tenant demand continuing to grow strongly and rents rising due to a lack of supply, which is why lenders are finding BTL mortgages more appealing with one or two even increasing their loans to value above 75%.

Where are the best BTL property deals? 

Not in your estate agents windows or even auction houses as you will be paying open market prices.
 
Buying through our BMV Property Investment Deals website however, slashes traditional deposits (if required) as well as giving immediate profit (even where refurbishment is required).

Here is our math for a worst case scenario on a BMV, 3-bed, semi-detached property valued at the Stamp Duty threshold.

£125,000 OMV
£  93,750 BMV (Our Purchase Price)
£  31,250 Saving (25% off Open Market Value)

£  70,312 Mortgage (75% of Purchase Price/56% of Open Market Valuation)
£  23,437 Deposit (25% of Purchase price/18.7% of Open Market Valuation)
£   4,995 Professional *Fees

£  28,432 Total Investment
£  54,687 Equity (Saving plus Your Deposit)

£  26,255 Profit (Day-1 Capital Growth)

£      304 Monthly Mortgage Payment @ 5.2%APR
£      650 Monthly Rent (UK Average Outside London)

£      345 Excess Gross Monthly Rent (or Income) 

When compared with traditional estate agents and auction houses, our BMV/BTL's offer exceptional investment return with real day-one profit equalling or exceeding your cash investment: something that just doesn't happen when you pay OMV prices.  

Remember too, 6-months after purchase you could re-mortgage your newly acquired BTL, releasing your deposit once again to use on another BMV purchase.

We can't think why anyone would knowingly choose to purchase buy-to-let property through traditional methods (if you can think of reasons, we would be delighted to receive your email letting us know).  

So why use our website?  

Our job is to seek professional relationships with as many **reputable property agents as possible who's job, in turn, it is to find suitable BMV opportunity for you to consider through our website.

Take a look at www.bmvpropertyinvestmentdeals.co.uk and see for your self and/or call John on 0203 239 4359 to discuss your property strategy.
 
* Fees may vary.
**Beware any agent (or website) suggesting that proof of deposit is not a requirement of a lender.

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  Location: Knightswood, Nr Glasgow
Country: United Kingdom
Type: Apartment

 



Valuation: £55000
Equity on completion: £13750
Cash Investment: £2,050
RICS 3/12 ~ WALKING distance of the University and two hospitals and 5-miles north west of Glasogw City Center, the 1st of three-floors, 1-bed, apartm...
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