Below market value property is a reference to property that can be bought for less than the price it could ultimately achieve on the ‘open’ sales market. The ‘open’ sales market refers to property marketed to the public via sales channels such as estate agents.
Typically, the vendor (seller) of below market value property wants to receive cash from a quick sale and in exchange will accept a substantially lower price than the property might otherwise achieve.
The vendor often has financial issues which need to be urgently addressed. This may include bankruptcy proceedings; divorcee; immigration; relocation or possible repossession; inheritance or bereavement.
Benefits Of Below Market Value Property
Buying below market value property enables the investor to rent it out at the (higher) normal market value and gain a higher return on their investment. Additionally, they can opt to release equity from the property at a later stage via a mortgage to help fund another purchase, or make a profit if subsequently sold it at its higher open market value.
Below Market Value Property Advice
Below market value property is hard to find. Due to its investment appeal it is eagerly sought by experienced property investors. Thorough research and due diligence is required to ensure that the property is genuinely below the current market value and represents a bargain.
Propertyinvestment.co.uk is a buyer’s adviser focusing purely on UK residential and commercial investment property. We specialise in sourcing property that is substantially below the market value. The majority of the property that we source is ‘off-market’, which typically is discounted by up to 30 per cent below the current market value, generating rental yields (incomes) of between 6% -10%.
Call us today to find out how we can help you meet your property investment goals.