Below Market Value Property (BMV)

Below market value (BMV) pricing is of prime importance to profitable property investment. Here we discuss the main issues regarding buying BMV property.

Below Market Value Property

As all experienced investors know, the key to a good property investment is to buy at the lowest possible price, essentially below the prevailing market value. This allows maximum profit to be obtained at the time of eventual sale; a simple enough concept but one often woefully overlooked by many buyers. For hardened investors however, buying at below market value (BMV) obviously forms a crucial part of their investment strategy.

• Search here for Below Market Value Property

BMV prices can often be achieved successfully in an emerging market where prices are still extremely low, before market forces lead to significant capital appreciation. The property, normally an off-plan option, is then sold on whilst demand is increasing but has not become saturated, taking advantage of normal supply and demand economics where prices increase as more people wish to buy.

Off-plan purchase is an ideal arena in which to purchase at below market value because gaining finance to fund the construction is an integral part of any developer's business strategy. In fact BMV is a win-win situation for both developers and investors: For developers, time is money; the quicker they obtain buyers’ deposits, the more advanced the project will become and the quicker the units will be built and sold on, allowing them to continue with the next phase or new development without delay. For investors, timely buying at pre-release stage means below market value prices and optimum potential for high returns on investment.

Main Benefits of Buying Real Estate Below Market Value:

• Savings often as high as 15% can be made with pre-launch prices from off-plan developers. Investors lock this extra capital into their property and, months later as soon as the project is actually launched, their units will instantly increase in value.
• Upon eventual sale or re-assignment of contract, the BMV investor then receives further returns on investment to add to the equity already made from pre-launch prices.
• BMV buying is a favourite strategy for flip investments, whereby the investor buys off-plan with the sole purpose of re-assigning the contract prior to completion, obviously achieving the maximum possible profit through pre-release buying.
• By being the first to buy on the development at pre-launch stage, investors ensure they not only secure a BMV price, but they also get to pick the very best units available from the start, ensuring a potentially easy sale when they decide to exit the strategy.

How do you find property at below market value?

It's not always easy to source pre-release options when a project technically barely exists. IPIN's strength lies within its ever-expanding investment sourcing team that is constantly in contact with developers and promoters all over the globe.

They are often the first point of contact for inside information on up-and-coming projects and BMV pre-release opportunities. Once these have been carefully checked and approved by IPIN experts, our members are informed without delay, avoiding the need for investors to waste valuable time and money doing all the groundwork themselves. IPIN is now well respected for keeping its members well-informed with carefully researched, up-to-the-minute professional advice on today’s very latest worldwide BMV investment opportunities.