Valor Property Investments: Why BMV Property Beats Savings Accounts

You have worked hard to save money, but keeping it in a traditional savings account means it slowly loses value to inflation over time. Investing in below market value properties can provide higher returns through rental income and property appreciation. While it requires more effort than a savings account, real estate builds true wealth. This article explains why buying discounted properties beats keeping your savings in low interest accounts if you want to grow your money. We discuss the key benefits of bargain real estate investing and how to mitigate the risks. You’ll learn practical tips to identify promising deals and transition from saver to savvy investor.

The Leeds Property Market Outlook: Opportunities for Investors

Strong Rental Demand

Leeds has a sizable student population and a growing professional workforce, fueling demand for rental housing. According to a 2023 survey, over 60% of Leeds residents rent rather than own their homes. For property investors, this indicates opportunities to generate attractive rental yields.

Affordable Property Prices

While Leeds house prices have risen over the past decade, they remain relatively affordable compared to other major UK cities. The average home in Leeds costs under £200,000, less than half the price of a home in London. For investors, this means lower costs to acquire rental property and higher potential for capital appreciation over time.

Supportive Government Policy

The UK government has implemented policies to support the private rented sector, including tax relief for landlords and less stringent regulation of tenancy agreements. In Leeds, the local council also provides incentives for residential developers to build more homes, which can benefit property investors. Government and council support helps create a favorable environment for buy-to-let investments.

Overall, strong demand for rentals, affordable property prices, and a supportive policy environment make Leeds an attractive location for property investment. By acquiring buy-to-let assets in this city, investors can generate competitive returns while taking advantage of a growing rental market.

How to Identify Below Market Value Properties With Property Management Professionals

To identify below market value (BMV) properties, you will need to work closely with property management professionals who are experienced in your target investment area. They have an in-depth understanding of the local property market and current market values, enabling them to spot BMV opportunities.

Review Property Listings

Instruct the property managers to review new listings in your target area as soon as they become available. Have them analyse recent sale prices of comparable properties to determine if any new listings seem undervalued. They should flag any properties priced at least 10-15% below the estimated market value for your review.

Network With Local Professionals

Property managers have connections with real estate agents, investors, and homeowners in the community. They may hear about BMV properties through word-of-mouth before they officially hit the market. Ask them to tap into their network to uncover any off-market deals that could be good investment opportunities for you.

Conduct On-Site Property Evaluations

Once potential BMV properties have been identified, instruct your property managers to schedule visits to evaluate the properties firsthand. They can assess factors like the location, condition, and potential that may impact the property’s value to determine if it is genuinely underpriced. Their on-the-ground insight is invaluable for finding diamonds in the rough.

By leveraging the knowledge and connections of property management professionals, you will be well-positioned to find the best BMV opportunities in your target market. With their assistance, you can build a profitable real estate portfolio and maximise returns.

The Benefits of Investing in BMV Property Over Saving Accounts

Higher Returns

Compared to saving accounts, BMV property investments have the potential to generate substantially higher returns over the medium to long term. By purchasing properties below market value, investors can achieve immediate equity and strong capital growth as the property value increases to the normal market rate. This allows investors to build wealth at a faster pace compared to the low interest rates offered by most saving accounts.

Tax Benefits

Investing in BMV property also provides investors with significant tax benefits that are not available with saving accounts. Depreciation allowances, negative gearing, and capital gains tax discounts can all help to reduce an investor’s taxable income and maximize after-tax returns. These tax benefits provide additional incentives for investors to invest in BMV property over saving accounts.

Additional Income Streams

BMV property investments have the ability to generate rental income and cash flow, providing investors with additional income streams that saving accounts do not offer. By renting out BMV properties, investors can earn ongoing rental income to fund living expenses or pay off the mortgage. This income can also provide security during economic downturns when other income sources may be impacted. The income-generating potential of BMV property represents a key benefit over saving accounts.

In summary, BMV property investments provide higher returns, tax benefits, and additional income streams that saving accounts cannot match. For investors seeking to build wealth over the long run, BMV property is a superior asset class to maximise financial returns. By tapping into the power of property, investors can supercharge their savings and gain financial freedom.

Conclusion

Ultimately, the choice comes down to you and your financial goals. While keeping your savings in a traditional bank account provides security, the low interest rates offer minimal growth. On the other hand, investing in below market value properties can provide higher returns through rental income and appreciation over time. However, real estate does come with more risk. By educating yourself on the real estate market in your area and working with experienced investors, you can make informed decisions about the best places to allocate your savings. With the right property at the right price, your savings could do more than just sit in the bank. Carefully weigh the risks and rewards to determine if BMV real estate is your ticket to financial freedom.

Coffee on us?

If you are interested in exploring a potential joint venture opportunity, we welcome you to schedule a no-obligation consultation with one of our representatives. During the meeting, we can discuss your project objectives and how our assistance with asset management, financing, and operations could help deliver the results you seek.

Please contact us at 32 Park Cross Street in Leeds, UK to arrange an initial discussion. You may also reach our representatives by phone at 0113-222-4537 or via email at info@valorproperties.co.uk. We look forward to speaking with you further about joint venture possibilities in Leeds and the surrounding West Yorkshire area.