How To Find Out About the Best Property Investment Deals

There are different real estate investment deals available to those looking to buy an investment property.

Below Market Value Property Prices

One of the biggest property deals is the option to invest at below-market-value property prices.

Commonly referred to as ‘BMV’, this is one of the biggest factors attracting so many people to buy to let investment, enabling investors to save money on their purchase.

Not only does buying a property for less than the current market value allow the investor to save money, but it also helps increase rental yields.

The less you spend on your property, the better your return on investment will be.

Say, for instance, you wanted to invest in a property that was worth £200,000 and had a rental cost of £700 a month.

With this, your rental yield would be 4.2%.

But if that same property was being offered at 30% below market value, and the property price was £140,000, you would have a higher rental yield of 6%.

Below-market-value property prices can be rare to come by, but they’re available if you know the best place to look.

We’ll cover some tips on how to find below-market value property deals further down in our guide.

Being able to save money is welcomed with any purchase, so whenever any savings opportunities arise for buy to let property, you won’t want to miss them.

One of the most popular ways to save money when investing in property is by looking out for any tax savings.

The most notable example of this in the last year has been the stamp duty tax holiday introduced by the UK government back in July 2020.

Introduced as a way to give the housing market a boost during the uncertain times of the covid-19 pandemic, the stamp duty tax holiday has allowed buy to let investors to save as much as £15,000 in taxes.

To find below market value property in the UK, you need to explore off-plan property listings from property developers and property investment companies.

Off-plan properties are commonly offered at below-market value prices in a bid to entice new buyers.

This is true of the properties currently sold here at RWinvest.

One of our current below market value property deals, Merchant’s Wharf, is sold at 55% below market value.

With prices from just £149,950, you would struggle to find similarly low purchase prices for a property with the same location and facilities.

Zoopla states that the average asking price for property in Salford is currently £215,949, so Merchant’s Wharf really is an unmissable chance to save money on your investment.

Another way to find properties below market value is by purchasing property through an auction or investing in a property that needs renovation.

Property auctions provide a good opportunity for investors to buy ‘fixer-upper’ properties below their market price.

The property will often sell at a lower amount than the usual value of the property compared to homes in the same location.

The investor will need to spend money renovating the property before it can be ready to rent out or sell.

The aim is that after a valuation, once all refurbishment work is completed, the property will be worth more than the initial BMV property price.

While securing a below-market value property in this way can be a successful method for some, it’s a lot more time-consuming and can come with some financial difficulties if not done right.

The property type you’ll buy for this kind of investment will also most commonly be terraced houses or similar properties, unlike buying off-plan investment properties which are often apartments.

If you want a hassle-free investment instead of a HMO or fixer-upper project, investing in purpose-built projects is the best option.

To save on stamp duty tax, you need to have completed on your property purchase before the official end of the stamp duty holiday.

The full stamp duty holiday now ends on the 30th of June 2021, with lower tax savings available until the 30th of September.

This means that you should act fast if you want to save on stamp duty tax.

If you’re investing in an off-plan property that’s not due to complete until after September 2021, you won’t be able to benefit from this tax saving.

If you’re set on saving money on stamp duty tax, you’ll need to instead invest in a property that’s already completed.

At RWinvest, we have several great completed developments available for you to choose from.

Enquire about our completed properties today and invest in your ideal opportunity to make tax savings on your purchase.

For information on how much you could save during the stamp duty tax holiday, check out our stamp duty tax calculator.