Here is our third article in our 4 part property investment strategy series that will show you how to use the current property market conditions to make immediate profits, create positive cash flow and also how you can reduce your overall risks by using sensible strategies.
You maybe thinking, why would anyone want to buy property now, especially with prices falling? Well these kinds of market conditions create massive opportunities for property investors to pick up bargain property deals at well below market value so they can make immediate profits.
We believe that now is a great time to buy as long as you have a focused buying strategy. It is a buyers market and property investors have huge bargaining power to pick up property deals at well below market value.
However, I suggest that property investors focus on the following three types of property deals;
Buy distressed properties in need of work and renovation. This is the tried and tested way of making money from property. And with property prices falling, an estimated 85,000 properties laying empty in the UK and new VAT laws that are charged by tradesman for properties that have been vacant for two years or more to just 5% this means that investors can not only buy these properties at well below their market value but there are lots of incentives to renovate property at the present time.
Another good tactic would be to buy repossessed properties that can be bought well below market value. This has been a classical way that property investors have bought property at massive discounts for years, and with repossession numbers set to rise considerably during 2008, it has never been a better time to hunt for these kinds of property deals. We can personally vouch through our own work that estate agents hold plenty of repossessions so our advice is hunt for the best deals and bargain hard!
One of the most popular ways of buying property at a large discount is to target motivated sellers. A motivated seller is someone who needs to sell their property quickly and savvy property investors are targeting these kinds of owners and offering a swift sale(say within 14 days) so that the vendor can fend off repossession for instance and in return, negotiates a big discount of say 25% to 30% off the asking price. Many property investors are adopting this strategy currently and providing you have sound methods of finding these kinds of deals, this can be a very powerful strategy of buying bargain property.
I hope that you can see that these market conditions hold a lot of opportunities for savvy investors to pick up bargain deals. The best time to buy property is now, as it is a buyers market and you can buy cheaply and it is now that the next crop of successful property millionaires will be born because the savvy property investors are now snapping up properties cheaply as they know that in the future prices will rise once again and they will be sitting on huge amounts of equity.
This concludes our third article in our property investment strategy series. Having a clear buying strategy and buying property below market value is a clear route to making instant and quick profits through property. The current market conditions are right to implement this strategy to good effect. Remember, that the majority of profits from property are made when you buy a property and not when you sell it.
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