There’s no hiding that investment property comes with a risk, as their is with all investments. However, if you ask us, property is one of the safest investments you can make, especially if it’s BMV. By buying Below The Market Value, your potential yield increases which  in itself reduces the risks.

Your answer to this is determined by two factors: potential yield and your current situation. 

For first time investors, location will likely be a major factor. As will finding a property with development potential where valued can be added. Maybe a quick flip opportunity, or their first ‘Refurbish, Rent, Refinance’  deal. Having such a property close to where you live is generally a good rule of thumb, especially if you’ll be doing the work yourself or letting it privately. 

Whereas, those more experienced investors typically favour yield over locality and invest in commercial premises as well as residential. 

If you’re struggling to work out where you should invest, get in touch! We’ll happily give you the benefit of our industry knowledge  and help you find some locations that suit you. 

Like with all investments,  how much money you put forth depends on you and your situation. Although if you opt for a BMV property, it’s likely you can reduce this cost. Thus allowing you to invest at a faster pace and build your all-important cash flow. 

NOTE: We’d always suggest you have a few thousand pounds extra in savings before investing. You can’t go wrong with a safety net.

Yes – it’s always the right time to be investing in property. Reason being that while property prices do fluctuate from month to month, the overall trend of the UK property market is up. What’s more, as the country’s population increases so does the demand for housing. One of the reasons why property investment is such a hot topic!

There are LOTS of benefits to property investment, especially when you go BMV. 

For starters, you can add value to your property to generate equity. This could be through DIY, resolving a sticky freehold issue or adding extra square footage to up the value. Do so for less than the value you add and when you come to sell, you should make a tidy profit. 

Then of course if your property is a second home, you have the option of letting it out – another great way to grow your yield. To show you just how profitable rentals are, jump into the example below…

You buy a house for £75,000 and decide to rent it out. Rents in the area are roughly 750 PCM but let’s say you’re after a quick tenancy and haggled down to £700 PCM (£8400 per year). You’ll still achieve a yield of 11.2%, which means the property could pay for itself in less than 10 years!

And then of course you can’t forget capital appreciation. It’s common knowledge that the housing market trends upwards so as well as a rental income you could also have a pleasant surprise when you decide to sell up. Don’t just take our word for it – house prices have risen 38.5% in the last 10 years according to Property Data. This would make your £75,000 purchase worth over £103,000! And even if you didn’t want to sell, you could withdraw this equity through a refinance deal and expand your portfolio even further. 

hile property is for the most part a far better place to put your money than the bank – a 10% yield beats 0.5% savings rate – as with any strategy there are some risks. So, before you start dabbling in BMV property, we urge you to take these into account. Here’s 3 to consider…

Property prices fluctuate

While in the long term, property prices do increase, in the short term the market can duck and dive. Therefore, if you’re looking at a short term property investment, this may be something to assess in finer detail.

Unoccupied periods 

The whole point of renting a property is to generate equity and cash flow. Although, when the property is empty for a certain period of time (maybe you’re in between tenants), any associated expenses will be on your shoulders. Something worth baring in mind when selecting your property and when you’re managing it.

Maintenance 

In order to let your BMV property out, or even flip it, you’ll have to keep up with the maintenance while you own it. If you’re looking to flip this may be less so of an issue, but still may end up costing you. If you were to rent your property, this would be why picking a good set of tenants is crucial. 

Tenants who’ll inflict less wear and tear on your property, mean you’ll have to spend less of your time and money doing odd jobs. For instance, if your tenant is a family who are in for most of the day, then you’d expect general wear and tear to be far greater than if your tenant was businessman who was only home during an evening. 

You’ve already found the answer… here! 

At The Property Sourcing Company we deal with properties that are all available for Below the Market Value. We source these ourselves through our sister company, which just so happens to be one of the UK’s largest homebuyers. 

If you’re after BMV property in a specific area, of a certain size, that’s geared towards a specific investment strategy, then do let us know. We’d love to partner up and be your property sourcer. 

BMV stands for Below Market Value, and is a term commonly associated with property investment. BMV property is arguably the most desirable form of property, at least from an investor’s perspective. Reason being that properties below the market often come with a higher yield and thus make for a better ROI.

This all depends on where you invest, which is why we always advise you do your research before putting your cash on the table. Some areas return a high yield for certain types of property. Others favour buy to let over property flips. Some are the reverse. And some work well both ways.  

That being said, a good yield would be in the region of 6-7%.