BMV UK Property Explained
We understand that not every investor that we work with has a wide experience of investing in properties within the UK market, so we wanted to take a little time to explain what BMV means, how you can get fantastic UK BMV properties to buy as well as learning about what benefits BMV property offers you as an investor.
You may be just about to begin your property investment portfolio or you might have been in the market for a number of years, however not everyone understands what is meant by the term BMV, it is an abbreviation of Below Market Value (BMV).
How can BMV properties in the UK help you?
We have already revealed that BMV simply means that a certain property is being sold at a price below market value, making these highly attractive to those looking to add properties to their portfolio as often there is a strong investment opportunity associated to them.
You could be surprised to know that properties within the UK market are regularly sold below what is considered to be market value and there are a number of possible reasons that a seller could be willing to accept less than the market value for their home, including:
- Property needs refurbishment.
- The property market is tough and lack of demand means that owners have to consider dropping their asking price to ensure a sale is made.
- The property could have been repossessed by the bank.
- The house could be in negative equity and the home owner would like to sell their home now to recoup what they can.
- The home owner could have a change in lifestyle, including travel, death and divorce.
So how can a property being sold under the market value help you as a property investor to be able to maximise your investment?
When you are buying a UK property that is deemed to be BMV, you are opening up the possibility of being able to create a higher level of equity within the property faster than capital appreciation can offer.
For example, a BMV property could have a market value of £82,000 based on comparable properties locally that have sold, but it could require refurbishment in order to be able to bring that property up to a similar or higher standard.
You will have heard about investors that have purchased properties and installed costly refurbishments such as new kitchens or bathrooms into a property, well the reason behind that is to increase purchase price from what they paid to closer the true market value.
Imagine that you were offered the chance to be able to purchase the example property for £73,000 and had a quotation of around £4,000 to complete required refurbishments to bring the property to the standard needed to achieve a higher market value.
If after completion of those refurbishments your house is revalued at the expected £82,000 value, you have already made £5,000 equity within the property as have spent a total of £77,000 on top of having a property that you can now let and make passive income from while capital appreciation builds.
Are BMV UK properties only available direct from the seller?
BMV properties are available from a wide range of sources, including from estate agents and online portals like Zoopla and RightMove however you need to know what you are looking for and have the ability to be able to negotiate a better deal in order to get your offer accepted.
While BMV deals in the UK are available from properties listed with estate agents, you have to remember that estate agents are looking to get the best possible price for properties that they are looking to sell for their clients, so don’t expect them to be looking to help you get the property below market value as it can reduce the fees they receive.
That said, when dealing with the property owner directly or with off market property deals, the prospect of being able to achieve BMV property deals is significantly heightened, as long as you have the ability to be able to negotiate a deal with them.
Although it can be easier to deal direct with the vendor, you have to be willing to explain to the home owner why you would be looking to offer a lower bid for their home, often meaning that you have to point out potential issues with their home, so making use of a BMV property deal sourcer can help you avoid those awkward moments.
Where can I get BMV UK deals?
BMV deals on UK property are certainly out there for you to be able to invest your money into however you just need to be able to find the property, view it and determine what issues are there that could need to be undertaken for the property to be able to achieve its true market value.
Vie Investment Properties specialise in UK BMV property deals and utilise an extensive network of compliant and experienced deal sourcers from across the UK to source, visit and negotiate BMV property deals for investors just like you.
To be able to see what UK BMV property deals we have available for you right now, simply sign up to our free investors newsletter to access the next round of deals being sent straight to your inbox, this list is completely free of charge and comes with no obligation to purchase a deal but will be limited to properties that offer a 15-24% ROI.
For BMV properties that offer higher return on investment, consider signing up to our VIE VIP mailing list.
Are BMV deals UK only?
No, below market value properties are available across the world, you just need to know where to find them and be able to negotiate the right deals to make them available to you but while deals like these are available internationally too, we specifically focus on UK BMV deals at this current time.
We do have the intention to be able to offer international BMV property deals too however we want to ensure that we create an industry leading UK service before expanding into other countries.