Investment Philosophy - BMV Property

Diversification

Just like a fund manager would choose a number of different shares, from various market segments, that respond differently to external industry specific news, in order to reduce your risk...we have selected BMV properties from a number of geographical areas to have access to a wider range of residential property investment. Our investors have seen how this has minimised  their downside risk. You will see how this contributes to a higher overall capital growth and return on investment in your property portfolio. 

Houses

Our principle is that the areas where there is a shortage of property or a certain property type – will have the highest capital growth. For that reason, we prefer houses and terraced BMV property.

‘Where are all the families going to live?’ People say two bed apartments are the easiest to rent.  The government has approved the development of a large number of new build apartments in areas like Leeds, Liverpool and Manchester. There is an oversupply and people are struggling to rent their property.

Yet, the terraced homes we are finding in those same areas are being rented very quickly. There is a need for houses. This is why our investors feel secure that we match demand with the property type. You too, will feel comfortable that your rental investment property will be let quickly at a good rent.

Avoid New build property

Has a builder’s premium; they have to show that they are making money for their shareholders. You would not be able to sell it for the price you paid. That is why the banks want larger deposits on new build property.

Typically 25% below market value

There is the possibility that property prices may fall even further than recent purchase prices. Carefully sourcing BMV properties that are significantly below market value acts as buffer zone that protects your money from capital erosion.

Counter-cyclical approach to buying and selling

It is NOT scary that prices are falling.

Go ahead and take a view that it is time to purchase at discount. Once you have thought this through you will realise your gain from investing in the future. People don’t stop paying into their pensions because the fund performance has been slow for the last year, do they?

Buy low – sell high

Balanced portfolio

We seek source properties in areas where the rental demand is strong and there is a relative supply shortage. Rental income tends to be more robust where there is a shortage of suitable properties to meet the required demand. Vacancy periods of the properties we source are shorter than the national average.

In the property investment market there may be periods of weak, or even negative, capital growth may occur however you can have peace of mind in knowing that you will get through it because the rental income is covering your mortgage.