Why pay full market price? Whether you are buying-to-let, or buying-to-live, discounted or below market value (BMV) property purchase can save thousands of pounds from the open market value – and negates the hassle and stress of bidding against others at auction.
Investment property – discounted property
Lenders are happy with genuine, discounted property and are willing to mortgage against actual purchase price. BMV is a great way to buy property with as much as a whopping 65% discount and when it’s done properly, it’s possible to create a win/win deal for both you and the seller.
Investment property – BMV, a smart move
Investing in a below market value property can be very lucrative and an ideal way to commence the building of a portfolio. To profit from BMV, you must first source and identify a good deal. This can be challenging for the novice investor. Once you’re armed with the knowledge – a few clever tips and tricks – it can be achieved with little or no costs at all. It’s essential that when evaluating a deal, it fits the right criteria:
- instant equity upon purchase
- should be rentable or saleable
- must have a strong positive monthly cash flow
Investment property – is BMV for you?