Find out what’s happening in the property investment arena both in the UK and internationally
Big Discounts On Exclusive Liverpool BMV Apartments
March 12, 2009Article by Ray Withers
The UK property market has suddenly come alive with firms springing up offering distressed property solutions to homeowners and developers in financial difficulty. Distressed property is property up for sale because the owners cannot keep up with the debt payments or because of bank repossession.
The Council of Mortgage Lenders is forecasting 75,000 homes will be repossessed this year – and add to that unsold but completed housing stock on developments and that’s a lot of property to shift.
The point to bear in mind as a discounted UK property investor is not to let your heart rule your mind when investigating buying below-market-value property. The same rules apply to buying distressed properties for sale as to buying any other property.
The fact the price is less doesn’t really matter.
The important points to bear in mind are:
- Is the property easy to rent?
- Does it need a lot of refurbishment work, which adds to the expense?
- Is the property well located with nearby schools, shops and transport links?
Yield isn’t so important today – any property not paying for itself at today’s interest rates is a non-starter, but work the figures out on the basis of a 2% or so rate rise after the next election. Interest rates won’t always stay so low.
Look at some of the BMV UK properties builders are offering to clear their stock.
For instance, Property Frontiers is offering an exclusive deal on flats at Merchants Court, Wavertree, Liverpool, built by a leading UK developer just a few minutes walk from Wavertree High Street and a short train ride from Liverpool city centre. Prices start at £89,960 for a ground floor flat with a current valuation of £119,950 and an estimated gross rental return of about £650 per month.
Merchants Court comprises 34 two-bedroom apartments arranged over three floors.
Each apartment has double-glazed windows and comes with a quality fitted kitchen with built in electric oven, hood and hob, standard washer and dryer laundry facilities and electric showers in the bathroom suites. The development is also very secure in a private gated setting with phone entry system.