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The Best Places to Buy Property Below Market Value

By Parmdeep Vadesha

Republish: EasyPublish™ Published: 04Nov2008 Word count: 488 Viewed: 360 time(s) Get Free Content For Your Site

Property investment is a numbers game. The wise and savvy property investors know that more profits can be made in buying below market value than in the resale of the property. Purchasing property at bargain prices translates into significant long term profits. Whether you're a novice to property investing or an experienced investor, buying below market value is definitely the way to go. Other than the traditional route of buying through estate agents, there are alternative ways of purchasing property that can give you the best value for your money.

Tread the road less travelled and explore other ways of purchasing property. Here are some of the best places to buy below market value properties:

* Purchasing at an auction

Auction houses are treasure troves of below market value properties. Many investors have discovered auctions as a good source of properties sold low enough to resell. Generally, properties are sold for about 10% to 30% below their market price tag, certainly lower than if you purchase through an estate agent.

An auction, however, can be an intimidating experience for the first timer. The fast-paced process can also be quite confusing. If you bid at an auction, make sure you come prepared with a maximum bid price and stick to it. Also make sure that you have made a thorough inspection of the property and found it to your liking.

Not all properties at an auction are sold for a bargain price. This is something that you should be aware of, too. There are a lot of strong sellers at an auction and this causes the price to jack up to even higher than the market range. Here is where your initial investigation comes in handy because you know how much similarly situated properties are sold for.

On a final note, make sure that your finances are in order before going to an auction. If the gavel falls on your bid, the property is yours. You then have to immediately pay 10% of the amount as down payment. The rest of the purchase price will be paid usually within 28 days. Make sure that you have this amount ready or that you have prepared a credit line or a pre-approved mortgage with your bank.

* Purchasing online

Due to the popularity and demand of property investments in the United Kingdom, many companies have set up websites that cater to the needs of the market. Some agents set appointments and advertise their properties through the web. Some even give you virtual tours. There are also several businesses that focus solely on Internet-based sales. In short, the world wide web has fast become the newest source to hunt for properties. Of course, below market value properties are available too. More importantly, since most net-based agents charge a remarkably lower commission, the benefits goes back to the buyer in the form of the property being priced lower than usual.

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