Podcast Summary
Strategies for securing a good deal in a hot property market: Stay informed on market trends, network extensively, and be persistent in your search for below market value deals, even in a hot market.
While the property market is hot and doing a below market value deal might be more challenging, it's not impossible. In this episode, Rob and Rob discuss strategies for increasing your chances of securing a good deal in the current market. Meanwhile, the US property market is experiencing even more significant growth, with an average increase of 15.8% year on year, and some markets like Miami seeing even faster growth. This boom can be attributed to larger stimulus packages and direct financial support given to individuals in the US. Despite the astonishing growth rates, it's essential to keep an eye on global market trends as we approach the end of the year.
Buying Below Market Value: Strategies and Insights: Stay informed about market developments, employ strategies to secure below market value deals, and gain valuable insights from Property Hub Magazine's upcoming issue.
While the concept of buying below market value in property is still possible, it requires effort and diligence, especially in today's hot property market. The government's recent announcement on the cladding issue offers some relief for owners of smaller buildings, but the ongoing saga underscores the importance of staying informed about market developments. The Property Hub Magazine's upcoming 30th issue promises valuable insights on various property topics, including buying new, avoiding gazumping, and extracting equity. Subscribe by August 18th to secure your copy. Meanwhile, the definition of below market value is simply buying at a discount, making it an attractive proposition for property investors. However, sellers are unlikely to offer properties below their worth voluntarily, so potential buyers must employ various strategies to secure such deals. Stay tuned to our podcast as we delve deeper into this topic.
Establishing the true market value of a property: To secure a good deal when buying property, research recent sales in the area and assess comparable properties to determine the true market value, ensuring you're not overpaying.
When it comes to buying property, the potential for securing a deal below market value is an attractive aspect for many investors. However, it's crucial to ensure that the discount you're getting is genuine and not just a discounted asking price. To establish the true market value of a property, you can research recent sales in the area and look for comparable properties to assess the value of the property you're interested in. Remember, a discount from the asking price isn't always a discount from the market value. So, do thorough research before making an offer to ensure you're getting a good deal. Additionally, be aware that in a booming market, people can overpay for properties due to excitement and emotions. Therefore, it's essential to remain objective and rational when making property investments.
Determining Below Market Value in Property Market: To find Below Market Value (BMV) deals, look at recent transactions, speak to agents, or check sold prices on Rightmove. BMV deals are challenging to achieve, especially in a booming market. Reasons for BMV include various circumstances, and thinking differently can lead to potential deals in underperforming areas.
Determining Below Market Value (BMV) in the property market is a complex process and not as straightforward as comparing asking prices to sale prices. The land registry has a lag time, and prices can change during that period. To get accurate information, it's essential to look at recent transactions, speak to agents, or check sold prices on Rightmove. BMV deals are challenging to achieve, especially in a booming market. Reasons for someone selling below market value include various circumstances, which can be explored further in a free course. The market's current state, the difficulty of finding good comparables, and the need for quick action when opportunities arise are significant factors to consider. Thinking differently and looking for opportunities in areas that are not performing well can lead to potential BMV deals.
Unique opportunities in London's property market and city centers: Savvy investors can secure below-market-value deals in London by taking advantage of motivated sellers and unsold units from developers
The London property market and city centers are currently presenting unique opportunities for those willing to go against the trend. Despite common beliefs that these areas are dead or not worth investing in, there are signs of growth and sellers who are motivated to sell. Buyers could potentially secure below-market-value deals by taking advantage of these situations. In London, sellers who are struggling to offload their properties and developers looking to unload unsold units present potential opportunities for savvy investors. Similarly, city centers, which have seen slower growth compared to the rest of the UK, are starting to show signs of recovery. Keeping a close eye on these markets and seizing opportunities when they arise could lead to successful investments.
Staying informed and proactive in city center property investing: Be knowledgeable about local markets, set up move alerts, network, move quickly with a decision in principle or cash, and explore refinancing options.
Investing in city center properties can yield profitable returns, especially when done with the right motivation and seller. However, it's not an easy process and requires active effort. Firstly, being knowledgeable about the local market is crucial. Setting up move alerts and regularly checking listings can help keep you informed. Additionally, nurturing a network can provide valuable information about off-market opportunities or transactions that have fallen through. Secondly, being able to move quickly is essential. Having a decision in principle or being a cash buyer can demonstrate your readiness to potential sellers. While not everyone may have the financial capacity to be a cash buyer, exploring options like refinancing can help. Overall, the key to securing a deal is being proactive, informed, and demonstrating your readiness to potential sellers.
Preparation is key to successful real estate deals: Being financially and legally prepared, doing bulk deals, teaming up, and focusing on under-competition segments can increase your appeal to sellers and lead to better investment opportunities.
Being financially and legally prepared is crucial when looking to make real estate deals. Having a reliable solicitor and being organized with your finances can make you more attractive to sellers. Another way to increase your appeal is by doing bulk deals or teaming up with others to purchase larger properties. This can provide sellers with the certainty they need to close the deal more quickly. Additionally, focusing on under-competition segments of the market, such as smaller blocks or converted houses, can lead to better buy-to-market value deals. By bringing a group of people together to make a deal happen, you can enable everyone involved to secure a great investment opportunity.
Acting quickly in a booming market: In a hot property market, seize opportunities promptly and adjust expectations for better deals, rather than letting greed hinder progress.
In a booming property market, being able to act quickly and make bulk purchases can lead to better than average opportunities. However, it's important not to let greed blind you and anchor yourself to unrealistic expectations. Market rates are rising rapidly, and getting a deal at market value is better than no deal at all. Be open to adjusting your expectations and seizing opportunities as they come. If you're lucky enough to secure a deal, do it quickly and efficiently to avoid missing out on potential market growth. Additionally, there are general principles and strategies for achieving below market value deals that can be learned through Property Hub University's free course, "How to Get a Deal When Buying Property."
Seizing Opportunities and the Drive to Succeed: Success requires more than just hard work; it's about recognizing opportunities and having a relentless drive towards achieving your goals.
Learning from this week's Hub Extra recommendation is the importance of seizing opportunities and having a relentless drive towards success. The book "Relentless: 12 Rounds to Success" by Eddie Hearn, who runs Matchroom, the world's biggest sports promotion company, shares his story of growing up with a wealthy family but still striving to make his own name and legacy. Despite his privileged background, Hearn acknowledges the importance of feeling lucky and taking advantage of opportunities when they present themselves. He also emphasizes the common traits of successful people, such as a winning mindset, self-awareness, and staying away from negative influences. This book serves as a reminder that success is not just about hard work but also about recognizing and utilizing opportunities when they come along.
Lessons from successful people's mindset: Success is a result of consistent effort, the right mindset, and seizing opportunities. Eddie Hearn's book reminds us of these essential principles.
Success leaves clues, and there are common patterns to achieving it, whether it's wealth, mindset, or self-awareness. Eddie Hearn's book, while not revolutionary, serves as a reminder of these well-documented paths to success. The mindset aspect is particularly valuable, as it's often the most overlooked yet crucial component. Even if you've heard it before, it's essential to revisit these ideas to avoid slipping into bad habits or wasting time searching for a secret. The key is to put in the work and seize opportunities as they arise. We encourage you to check out the book, as a reminder of these essential principles. Remember, there's no magic formula or secret to success; it's about consistently applying the right mindset and taking action.
