The ability to purchase the right property, at the right price, is an essential building block of success in this game.
If you know what you are doing, when you are deciding what a particular property is worth, then that is going to give you the edge on vendors, whether they are estate agents or homeowners.
Learning how to assess a market value before a purchase – to ensure the best investment possible – is a skill that can be learned.
You have probably seen a lot of information online about below market value (BMV) properties.
And getting a discount on your purchase is a great thing to aim for.
However, you should never buy a property just because you know that it is being listed at a cheap price, compared to the local market.
In the past, we have secured property for around 30% BMV and those projects have not turned out so well.
This is because we were a little blindsided by the price and didn’t properly consider other issues, which ended up including:
So, if you are new to property, it is easy to get excited about a good discount but that aspect of the deal, should not be the only reason to buy it.
And you need to make sure you’ve considered all the other factors, we have discussed so far.
But yet, if you’re able to get a discount and purchase a property at below market value as well as ticking all the other boxes, then you should go for it!