A Below Market Value (BMV) property can be a very good investment. Of course, if you pay below what the property is worth on the open market, then you already have a head start when it comes to letting income or resale.
How to find BMV properties
Finding BMV properties is a specialist task. If everyone could do it, then buying property at figures below market value would soon have a detrimental effect on property prices in the area, as well as the availability of lending.
What you need is an expert. You will not find BMV properties on the usual property sites; they may not be listed anywhere. No marketing is required, as such deals are offered directly to interested buyers via specialist agents.
BMV investment consultants
Companies exist that match BMV properties to buyers, so by signing up, you will have access to exclusive deals that simply aren’t available anywhere else. Generally there are no fees to pay in advance; it is usual for the agent to take a fee upon completion of the sale. Some may even waive this if you agree to the agency letting the property on your behalf.
The advantages of BMV properties
As soon as the deal is complete, you will have equity in the property, which means you can sell it on or let it out and keep more of the income. It’s an easy, cost-effective way to build a property portfolio that works for you, and you may even be able to buy a tenanted property, which guarantees a rental income from day one.