There are so many people claiming they can point you to real BMV properties in the UK. Before you fall into the wrong leads, here are some tips on how to get the best below market value property out there.
1. Discover the true value of the property
Finding out the true price of BMV property leads is important, so you’ll know if you’re really getting a house below the market value. Many opportunistic sellers often advertise the original price at a very, very high amount. Hence the ‘discounted’ price is really just the actual selling price of the house.
Use the internet! Log in Rightmove and look for houses with similar specifications. Go out of the house! Ask the land registration office near the area to find out how much does a house really fetch for in that place.
2. Consult with a letting agent
I prefer talking to letting agents (and not real estate agents) whenever I deal with BMV property, since they can answer basic investment questions such as: how much rent can you ask for when you put the house on lease; does the area produce high profits for rental properties; and what are the usual tenants that rent out in the area.
Don’t be afraid to ask the letting agents about anything you want to learn about the area. Most of them are usually accomodating in these meetings, because they’ll probably want you to sign them in as your letting agent if ever you decide to push through with your UK BMV property joint ventures.
3. Check out the property
Maybe it’s the great digital revolution getting the better of us, so it may be tempting for anyone to just look at online photographs of the property, especially when the house for sale is quite a distance away.
The method is convenient, in some ways. But I do encourage you to insepct the property in person, especially when you’re entering BMV property investment deals, because, to be honest, properties being sold at below market value can be banged up and require a little fix her up to become livable, rental properties.
What I’m suggesting isn’t just a one time trip. Treat it as if you’re stalking your ex-boyfriend that you just can’t get over (Just kidding!), drive around the vicinity of the house at different times of the day if possible so you get a feel if people would really feel good renting this property.
Aside from that, nothing beats the experience of seeing the house with your own eyes. You can’t just take the word of a seller that everything’s in good condition. Sometimes, vendors would paint over cracks on the walls and put extra furnitue around the house to hide some defects.
Think that even though you’re paying for a BMV property investment, you’re still going to spend your hard-earned money in it.
4. Management approach
As early as the planning stage, it’s better to figure out what you’re going to do with the house.
HMO (houses in multiple occupation) and LHA (Local Housing Allowance) tenancies are traditionally harder to manage, so consider how you will work around these property types. Do you have experience in handling these yourself, is there a good quality reputable agent nearby that can handle it for you, have you checked them out as agents?
Early planning is also important to avoid any misunderstandings with the local council regarding permits.
5. Never give the entire price upfront
Last but not least, don’t pay for a deal upfront or in advance, only pay upon completion. If it’s genuine deal then no money should part hands until legal exchange of contracts has taken place.