Grabbing a Bargain in Property
Parmdeep Vadesha
September 19, 2008
Even though the media is portraying the property market as an unprofitable place to be at the moment, professional investors are not paying attention – in fact they are very pleased to see so many people retreating from the market!
They see the property arena as having numerous buying opportunities. Many buy-to-let investors and buy-to-let landlords are poised to profit from stabilising prices particularly as it is likely that more people will rent, rather than purchase their own homes. The good news is that rents have continually increased based on data provided by the National Landlords Association. And although the Halifax index reported that house prices in the UK have taken a tumble, there are efforts underway that will help to rekindle the market.
For one, the Treasury has been developing a set of measures, including stamp duty deferral to assist financially-strapped families. The National Association of Estate Agents considers the suspension of stamp duty as one significant factor that will help boost the property market. Secondly more and more lenders are slashing rates.
How to bag bargains
Buy at auctions. Investors can ensure bargains when they purchase property at auction where properties are sold for as low as 40% less than the property´s real market value. For many people, the main attraction of buying properties at auctions is the opportunity to save money and gain profits.
Buy repossessed properties. Another way to buy cheap is through repossessed properties which now make up 20% of properties at auctions. Auction houses, where such properties are often sold report that repossessions are selling very well compared to other lots. New-build properties specifically are going for an average 26% below the initial buying price.
Find distressed sellers. Factors such as divorce, job loss, serious illness or other personal problems often prevent many people from taking care of their property. Due to their inability to perform necessary upkeep, they sometimes go into foreclosure thus prompting them to sell it. Usually they experience financial struggles and are therefore willing to put their property on the market at a lower price that can still be subject to negotiations.
Take advantage of the Internet. Use the web to automatically find "off the market" bargain properties without having to get in touch with estate agents or going to auction houses. The Internet also affords property investors with the opportunity to develop new and unique methods of finding motivated sellers of properties. Bargains can also be obtained through an Internet marketing system that automatically locates desperate vendors of bargain properties.
Many investors are inclined to buy property at the current market value and depend on escalating property values over the mid- to long-term to rake in profits. While many of them have surely produced considerable returns on their investment by taking advantage of the strategy, it cannot be denied that they could have gained far higher profits had they purchased the property below market value in the first place. Thus buying properties at bargain basement prices becomes one of the most important aspect of acquiring property and should be taken into great consideration.
They see the property arena as having numerous buying opportunities. Many buy-to-let investors and buy-to-let landlords are poised to profit from stabilising prices particularly as it is likely that more people will rent, rather than purchase their own homes. The good news is that rents have continually increased based on data provided by the National Landlords Association. And although the Halifax index reported that house prices in the UK have taken a tumble, there are efforts underway that will help to rekindle the market.
For one, the Treasury has been developing a set of measures, including stamp duty deferral to assist financially-strapped families. The National Association of Estate Agents considers the suspension of stamp duty as one significant factor that will help boost the property market. Secondly more and more lenders are slashing rates.
How to bag bargains
Buy at auctions. Investors can ensure bargains when they purchase property at auction where properties are sold for as low as 40% less than the property´s real market value. For many people, the main attraction of buying properties at auctions is the opportunity to save money and gain profits.
Buy repossessed properties. Another way to buy cheap is through repossessed properties which now make up 20% of properties at auctions. Auction houses, where such properties are often sold report that repossessions are selling very well compared to other lots. New-build properties specifically are going for an average 26% below the initial buying price.
Find distressed sellers. Factors such as divorce, job loss, serious illness or other personal problems often prevent many people from taking care of their property. Due to their inability to perform necessary upkeep, they sometimes go into foreclosure thus prompting them to sell it. Usually they experience financial struggles and are therefore willing to put their property on the market at a lower price that can still be subject to negotiations.
Take advantage of the Internet. Use the web to automatically find "off the market" bargain properties without having to get in touch with estate agents or going to auction houses. The Internet also affords property investors with the opportunity to develop new and unique methods of finding motivated sellers of properties. Bargains can also be obtained through an Internet marketing system that automatically locates desperate vendors of bargain properties.
Many investors are inclined to buy property at the current market value and depend on escalating property values over the mid- to long-term to rake in profits. While many of them have surely produced considerable returns on their investment by taking advantage of the strategy, it cannot be denied that they could have gained far higher profits had they purchased the property below market value in the first place. Thus buying properties at bargain basement prices becomes one of the most important aspect of acquiring property and should be taken into great consideration.
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