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camem'

Below Market Value - Our New Friend

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now this is great - singing pig fans actually searching out and acknowledging 25-30% drops in the market, calling it 'below market value' so that they can loan closer to the original higher 'open' market value.

Looks like the smart money in Sydney (ahead of us in the cycle) has been in offering specific 'BMV' loans, (as far as I can see, previously known as Interest Only but you've got to refresh the buzzwords in a falling market)

why is this our friend ? All the piggies will be falling over themselves to push down the price so that they can 'avoid risk' by putting no capital in and getting the cash from a bridging loan company

EG this stunning bit of audacity (fair play to him if he gets the fee) :

Hello all,

I have a lead that could turn into a possible BMV deal in Durham. I am based in Manchester so therefore I am looking to pass on the details as below:

In a town called Butterknowle, Bishop Auckland

Postcode: DL13 5NX

Terraced 3 bed, needs to sell in under 3 months so not really BMV motivated. Not with an estate agent yet.

They need need to relocate for work, reasonable urgently.

Value: £100,000 (in view of refurbishments needed). 3 Bedroom properties in the village are currently marketing for £115k.

I can contact them and introduce yourself if interested. I have not negotiated any price as of yet therefore it would be down to yourself to contact the seller and have a chat with them.

I am looking for a finders fee of 1.5%

Please PM if you are interested.

(my translation 'I've found a property falling in value') but it actually gets a bite

would be interested and be happy to pay finders fee if we get a deal.... but not sure how I could get myself interested if its 'not really BMV motivated'. I dont understand.

http://www.singingpig.co.uk/forums/102869/ShowPost.aspx

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Well, I think BMV is the way forward for STRs & FTBs.

It's just a case of getting out of the mindset of 'paying retail'. I think the major valid reason for not operating on a BMV basis is if you think the crash will reduce prices by more than 15-20% nominal (not 'real').

Serious question. Has anybody here checked the BMV techniques discussed on SP and made a conscious decision to use them? If so, why? If not, why?

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shows how overvalued rightmove is, within the same area.....

http://www.rightmove.co.uk/viewdetails-104...pa_n=1&tr_t=buy

119,000

that postcode on nethouseprices shows a different story... 30 -> 40k less than the 'rightmove market value'

http://www.nethouseprices.com/index.php?co...5NX&town=&year=

I keep saying this to people but they do not listen!!!!

Asking prices are a load of toss!!! I reckon that in Liverpool the asking prices are up to 40% over-valued and on average 18% over-valued. They only need 1 dickhead to bit and they are quids in - Unfortunately, there are lloads of dickheads!! :(

TB

Edited by teddyboy

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I keep saying this to people but they do not listen!!!!

Asking prices are a load of toss!!! I reckon that in Liverpool the asking prices are up to 40% over-valued and on average 18% over-valued. They only need 1 dickhead to bit and they are quids in - Unfortunately, there are lloads of dickheads!! :(

TB

Don't worry. The south ran out of dickheads a while ago. Liverpool will run out soon. Just be patient.

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Well, I think BMV is the way forward for STRs & FTBs.

It's just a case of getting out of the mindset of 'paying retail'. I think the major valid reason for not operating on a BMV basis is if you think the crash will reduce prices by more than 15-20% nominal (not 'real').

Serious question. Has anybody here checked the BMV techniques discussed on SP and made a conscious decision to use them? If so, why? If not, why?

Yes, A friend walked into a new build got one of the possible 2 options against discount, that was worth £5,000 so he bought at current price for £145,000. It would appear as £150,000 on the land register.

I went into the same place and said I would only be interested if both of the incentives were included, that increased the saving to £10,000 Land register at £150,000 still, cost to me would be £140,000

I then negotiated a further £10,000 of the price.

This conversation was tn minutes long.

This conversation was pre sipps pull out and against a two bed flat.

This was five months ago.

The devlopment is still not finished, there are a further two phases to go and I believe that there are not enough buyers who can afford anything approaching what they are asking

That was £15,000 further savings against a flat for being cheeky.

How much further I could have taken it I don't know.

But keep asking until they get cross.. That I haven't tried.

Phase one of this development was at £170,000

now a further £15,000 saving.. what does that mean to me?

repayment against £145,000 loan is £848.76

Repayment against a £130,000 loan is £760.96

£90 (ish) a month..

Thats a lot, of course I do not consider it to be affordable

basic flat, starter home.. requires £32,500 a year at 4 times multiple..

This is devon, good luck on that one.

While first time buyers are at 7% you are paying above market value.

Edited by apom

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Guest Fiddlesticks

In a town called Butterknowle, Bishop Auckland

Postcode: DL13 5NX

There can't be more than a couple of dozen houses in that postcode. Why wouldn't anyone interested save themselves £1500 by spending £10 on some stamps and sending out some letters saying they want to buy and asking if anyone wants to move?

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There can't be more than a couple of dozen houses in that postcode. Why wouldn't anyone interested save themselves £1500 by spending £10 on some stamps and sending out some letters saying they want to buy and asking if anyone wants to move?

yes, not very clever is it? They have screwed up big time by giving the full postcode! :lol:

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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