Is a BMV Property Still a Good Investment
Is a BMV Property Still a Good Investment?
A BMV property is a property you buy below market value, and which you later either resell or rent for a profit. Traditionally, investments in below market value properties are some of the most lucrative you can make.
But is investing in property below market value still profitable ?
Finding the right properties Some investors make a lot of money from investing in property that is below market value. Such investors are good at spotting great deals properties that are truly sold below their market value and make the most of them. So for those investors investments in BMV property can be profitable, the challenge is to find the right properties to buy.And that is not at all easy, especially for an investor who is just starting, or for one who has not specialised so far in properties.
What is important to understand is that not all BMV properties are necessarily good investments.Why some properties are tagged as BMV, Many properties are sold at a lower value than their true market value because they are either located in areas where finding tenants proves difficult, or have some great flaw not necessarily obvious at first sight, like for example a terrible location by a nightclub which makes it almost impossible for those living in the property to get any sleep during the weekends.
Buying a BMV property that has a bad location or a critical flaw, even if you pay for it 15% to 20% less than the market value price, usually proves a poor investment.Is it a true below market value property?And then there is the question of what is actually represents below market value. It is not easy to determine this value if you are not well-informed about the market values of the properties in the nearby area. And to be well-informed, you need to do a lot of research, both online and offline.In conclusion, for those interested in investing in property, a BMV property is a good investment, provided that one compares the financial markets and has the data that justifies their investment. Without that information about the market a BMV property investment is considerably more risky.
For more information on a Below Market Value property investment please fill in the form below.