White Knight Associates explains how you could Increase your returns On BMV
It’s not rocket science to assert that the starting point for buying a good investment is buying something that is below its’ true value.
Buying a property at 5...10…15% below value is a great start to your investment. Securing a £100k property for £90k will for example increase your returns by over 5.5% pa during a 25 year investment. This is because the equity you put in and your loan costs are less in relation to its’ capital value.
Below Market Value (BMV)
White Knight Associates have found that some buy-to-let chatrooms are full of references and of individuals promising to sell BMV. Our advice is steer clear of these, particularly if you are a newbie landlord or don’t know the area. People selling on these sites are not doing it out of charity and the likelihood is that they will know the market and their properties value better than you will. This puts you immediately at a disadvantage when it comes to negotiating a good deal.
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