Below market value or BMV properties can be good investments, bringing considerable returns. That said, for BMV property investments to work, you need to consider carefully how, when, and in what you invest your money. Here are 3 tips.
1) Do not take other peoples word for granted on what is BMV What truly represents a below market value property is difficult to establish. There are neither hard-and-fast rules nor trustworthy figures you can take for references to decide the market value of a property. There is some surmising involved, but what is more important is knowing the market. And you can only get to know the market if you become involved with it.
2) Great BMV properties are at least 25-30% cheaper than the usual price. Buying a good property in a good location at 15% or less of its market value may help you make an investment, but it probably wonít make you rich unless you do it repeatedly. You have to remember that there may be some taxes involved and/or other expenses you may have to support from your own pocket before reselling or renting the property.
3) Beware investment opportunities that are too good to be true. A house may end up a below market value property because its owner is desperately in need of cash, and so wishes to sell as quickly as possible. That is a fortunate case for you. On the other hand, some houses end up BMV properties because of one or more inherent flaws that make them bad places to stay in, like for example an inaccessible location, a bad roof, or a poor heating system which requires an overhaul. If you invest in a below market value property that has any of the above flaws, you may not make a great investment even if you save money when buying it.
All in all, BMV properties can be excellent investments, provided that you are well informed about the market, the property, and the risks involved. Which is why so many people do their research beforehand Ask the Experts at compare the financial markets and you wont come to regret your investment later on CTFM Voted number one for all your BMV Deals Leads & opportunities visit us today.
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