Property prices in the UK have evened out in the past few months. Contrary to what others say, the decline is not necessarily an unfortunate event since prices have risen gradually for a number of years now and a correction was foreseeable at some point. For some in the industry, a slowdown in the property market may not seem like a good time to buy your next investment property. However it presents opportunities for you as a property investor to find cheap investment property.
If you’re investing with a long-term approach, which you should be if you’re earnest about making money from property, then the current environment is a good time for you to snap up bargains especially if you have ready cash to invest. The best thing about a slowdown is that the market is favouring buyers. This means that you can get even better deals for your next property purchase. With the current climate bringing about numerous below market value properties, finding cheap investment property has become less challenging.
Property investors know that buying BMV properties is what successful property investing is all about. Making profits from the day of purchase itself is a task that many have found achievable and will continue to do so. For those on the lookout, there are some simple ways you can acquire cheap investment properties.
Purchasing repossessed homes is an excellent way of obtaining bargain prices because these properties are often bought for a fraction of their actual market prices. Repossessed properties may not always be advertised voluntarily but lenders are often willing to answer questions because of their need to sell the property and regain their capital investment – your best bet is to speak to local agents and check out all the local and major property auction houses that cover your area. But before making the decision, make sure to check the property first to avoid problems.
You can also find cheap investment property at auctions where 90% of cheap properties, according to Sunday Times, go under the hammer. Buying properties at auctions can save you up to 40% as long as you know what to do. Prior to attending an auction, your finances must be in place so you can go ahead with the completion of the purchase in the timescale required.
Typically when the hammer goes down on your bid, you’ll need to put down 10% of the purchase price and pay the balance within 28 days. Before making a bid, be sure to conduct relevant research, make sure that the property is in a good location, have a survey done on the property, and view it prior to auction day. To know about upcoming auctions, contact local auctioneers or sign up for their catalogues.
Just because prices are going downhill doesn’t mean all doom and gloom. Overall the decline presents a good opportunity for you to negotiate good prices at below true market value, bag a bargain and increase your chances of earning profits once the market improves.