HPCheese Posted September 12, 2005 Share Posted September 12, 2005 Please try and keep this quiet, but I've heard there's a new business model for making money on buy-to-let. Apparently it's called B.M.V, or 'Below Market Value'. Basically what this entails (for the non-business minded), is to buy a product for less than the 'market value', and that way you can make money on it by selling it at some point in the future for 'market value'. Surely this is some sort of genius, and WHY HASN'T ANYONE THOUGHT OF IT BEFORE??? Seriously though, *shhhhh*, don't tell anyone... If everyone tried to buy 'BMV' then the housing market would come crashing down. Or wait......maybe when people buy 'BMV' that means prices are coming down??? No, of course not. Only the smart people are buying houses BELOW MARKET VALUE. Just don't tell anyone, or the 'Below Market Values' will become 'ABV's', (Above Market Values'). Seriously though, *shhhhh*, don't tell anyone... Quote Link to comment Share on other sites More sharing options...
cgnao Posted September 12, 2005 Share Posted September 12, 2005 This strategy is also known as "catching falling knives". Most dangerous to inexperienced/shaky hands.... Quote Link to comment Share on other sites More sharing options...
200p Posted September 12, 2005 Share Posted September 12, 2005 So the stupid public are all paying the full asking price or near to.....how desperate. Quote Link to comment Share on other sites More sharing options...
2005 Posted September 12, 2005 Share Posted September 12, 2005 I am not sure such a concept of 'below market value' can exist in the housing market. I the value of a house is what it is sold for then surely the price they pay for it is the market value. Who are they trying to kid..us or themselves? Quote Link to comment Share on other sites More sharing options...
Once in a lifetime Posted September 12, 2005 Share Posted September 12, 2005 Below market value = Problem properties, property that does not sell. Structural defects, Access disputes, Annual flooding etc… If you see a gift horse (house) look deeply into its mouth. In a bear market these properties sell Well Below Market Value. Quote Link to comment Share on other sites More sharing options...
Converted Lurker Posted September 12, 2005 Share Posted September 12, 2005 Genius idea isn`t it? There`s a guy local to us who buys of the desperate, for example, he paid 250K for something on sale of for 280K, he now can`t sell it for 260K, as I say genius....some of us just don`t get it..or have it Quote Link to comment Share on other sites More sharing options...
Elizabeth Posted September 12, 2005 Share Posted September 12, 2005 I am not sure such a concept of 'below market value' can exist in the housing market. I the value of a house is what it is sold for then surely the price they pay for it is the market value. Who are they trying to kid..us or themselves? <{POST_SNAPBACK}> If your buying as an investment, market value is based on yield. I guess the overall yield is the rental return + profit/loss from selling. BMV sounds like a pretty dubious prospect if you aren't getting a whooping rental yield to the point that you can afford to capital loss. Quote Link to comment Share on other sites More sharing options...
New Darker Law Posted September 12, 2005 Share Posted September 12, 2005 Please try and keep this quiet, but I've heard there's a new business model for making money on buy-to-let. Apparently it's called B.M.V, or 'Below Market Value'. Basically what this entails (for the non-business minded), is to buy a product for less than the 'market value', and that way you can make money on it by selling it at some point in the future for 'market value'.Surely this is some sort of genius, and WHY HASN'T ANYONE THOUGHT OF IT BEFORE??? Seriously though, *shhhhh*, don't tell anyone... If everyone tried to buy 'BMV' then the housing market would come crashing down. Or wait......maybe when people buy 'BMV' that means prices are coming down??? No, of course not. Only the smart people are buying houses BELOW MARKET VALUE. Just don't tell anyone, or the 'Below Market Values' will become 'ABV's', (Above Market Values'). Seriously though, *shhhhh*, don't tell anyone... <{POST_SNAPBACK}> So let me get this right, that's buy cheap, sell high? Good grief, this is pure genius!!!! Quick, delete this thread webmaster. Keep it to ourselves!! Mwahahhahhahhahhhahhhahahhaaa!! NDL Quote Link to comment Share on other sites More sharing options...
BandWagon Posted September 12, 2005 Share Posted September 12, 2005 Maybe someone should kindly head over to the Squaling Pig and tell them about Docklands, all the flats there are up for sale at 20% BMV. There's an absolute fortune to be made in them thar hills... Quote Link to comment Share on other sites More sharing options...
Elizabeth Posted September 12, 2005 Share Posted September 12, 2005 I'm waiting for 75% myself on the docklands (Olympics or no olympics - its only 2 weeks) Quote Link to comment Share on other sites More sharing options...
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