Since global recession hit the world the property market experienced a downturn. Property prices fell steadily and thousands of houses were repossessed by the lenders as the homeowners could not pay their mortgage eon time. This created a disturbance in the market; but investors took advantage of this situation and started buying below market value properties religiously.
Bank-owned properties are being sold at low rate at different property auctions; this is a good place to buy BMV properties. To avoid repossession, a lot of homeowners sell their houses to the investors; cash buyers, cash home buyers, property buyers or just home buyers are the other terms used to define a property investor.
The popularity of cash home buyers is increasing each passing day; according to the experts, cash property investors have come up as the new driving force in the market.
Why homeowners would sell their house for below market value
Property investors buy houses for below market value and sell the houses for higher price. You might ask why people would agree to sell their houses at discounted price! Here are the answers:
It is difficult to secure quick and guaranteed sale these days; homeowners who need to sell their house quickly are ready to reduce the asking price to get a quick buyer.
Employment market is not stable yet; a risk of getting unemployed and gradually entering into mortgage arrears is still there. Homeowners who anticipate a financial hardship often decide to sell the house quickly before the problem takes bigger shape and the house goes into negative equity.
There are many advantages of working with the cash buyers; apart from guaranteed and quick sale cash buyers relieve the sellers from the complicated paperwork and other hassles. A professional property investor takes care of all the formalities and offers the seller a trouble-free deal.
Individuals who are interested to invest can buy properties at low rate now. Things will definitely change in future and property market is bound to improve today or tomorrow. The houses purchased today can be sold for higher prices later on. Many investors do a little bit of renovation to make the house attractive and bag a good deal too.
Buy to let investment opportunity
Apart from selling the house for higher price, an investor can also earn money by letting it on rent. Buy to let investment is an attractive option to make money. As many people have lost their homes over past couple of years, most of them have moved in to rented houses . Hence there is a sudden surge in demand of rented apartments in the country. Buy to let investors purchase houses at low price and then start earning money be letting it on rent to the tenants. However, the investor must collect the authorization from concerned authority to start buy to let investment business.
Overall, property market looks like the gold mine for the investors; just grab it and enjoy long term benefits.