Singing Pig

"Surely most people do NOT sell BMV; that is what makes finding BMV purchases so challenging. This is reinforced by the fact that most buyers do not even know about BMV. Though property investment is common place, attacking a sector for a markets downfall is not viable -- surely we should be looking further a field. Looking back at market crashes someone always gets blamed; however, it has almost never been the right people"

Hi Jonathon.  You misunderstand me.

What I am saying is everyone is scared.  And no one wants to pay "full market value" (that is, last month's price.)  Everyone who buys now is seeking a bargain, whether they think of themselves as BMV investors or not.  So to make a sale, every vendor is going to have to cut prices BELOW MARKET.

So, if virtually all the sales are taking place below last month's price, then this month's average price will be lower, and that will be the new market value.  Then the cycle of discount and price cuts get repeated from a new, lower market value.

 ==

"I am going to concentrate my efforts on Spain, Turkey and Asia in the hope of securing a more financially stable future"

Fine.  But how can you handle three markets at once? When I decided it was time to invest elsewhere, and the game was up in the UK, I left England.  I now live in the country where I invest, and I understand the market values the properties that I am buying, better than the average local EA in this market.  If you want expert results, you'd better behave like an expert, not a newbie chasing someone else's idea of "hotspots."

 ==

"I'm possibly moving to Spain next year and believe it wise to focus my attention on the Spanish market."

Well the Spanish market is in full slide-mode, at the moment - like the US - from what I read. In a market like that, banks are very nervous, and you will have trouble finding a bank that will lend to you.  If you do, you can expect them to lend something like 70 percent (or less) of the house price, and the bank will use the LESSER of market value, or what you paid.  So the old BMV game of fooling the banks, and getting them to lend against a fictional higher market value will not work. 

You may find that you will have to be patient, and wait at least another year or two for a bottom.  Even then, prices may not rise much after "the bottom."  My own view is that the only homes that will rise much are the ones in the right location.  Others will hit the bottom, and get stuck there... for years and years to come.

And... I have my own ideas about what is a good location.  Want to know what I am thinking?

Jon you say:

'I was recently considering taking a course on BMV investing; however, with the current turbulent market conditions I decided that the money would be better saved'.

I am bit confused by the above statement.

For instance, you go on to say this is sector you are still interested in, so why arn't you prepared to spend some money on valuable information?

 I doubt you will get a variety of responses as to work with people you need to demonstrate what is clearly in it for them. Why else would they give up there time and money, without knowing were the return was coming from?

 After all this you now decide Spain is a better option. This is a quick turn around and might suggest you had not given much thought to your first post.

If I was you I would give most thought to how to find motivated sellers, as many of the factors which drive people to sell below market value are universal.

If you are serious about learning.

Send me an email to jonbieri@potential2property.com 

Include your CV and what's in it for me.

Thanks

Hi there James,

 Thanks for the very clear explanation; I really do appreciate your time. The reason I felt it wiser to concentrate in these countries -- namely, Turkey and Spain -- is my families businesses operate out of them. This, I felt gave me an advantage; something I am beginning to realise it does not. As you have pointed out, placement without knowledge is pretty useless.

The reason I may be moving to Spain is not the property market, it's a job offer from Pure research; they want me in their financial division.

However, I am very interested in what you think may be good locations. I don't want to act like the 'newbie'; but, in the end that's what I am. Like I said, I have to learn! I'm just glad there are people willing to help.

Regards,

Jonathan.

Hi there,

The reason for not taking the courses is that I feel they may be of little use in the current market situation. Many of the courses that I looked at were very focused on the one day re-mortgage strategy, e.g. Simon Zutshi: Property Mastermind. If you could advise a course that you feel would be appropriate I would be happy to take it!

I will send you a more focused response to your second question with a copy of my CV.

Best regards,

Jonathan.

jondowns1259:

Hi there,

The reason for not taking the courses is that I feel they may be of little use in the current market situation. Many of the courses that I looked at were very focused on the one day re-mortgage strategy, e.g. Simon Zutshi: Property Mastermind. If you could advise a course that you feel would be appropriate I would be happy to take it!

I will send you a more focused response to your second question with a copy of my CV.

Best regards,

Jonathan.

 

Many of the courses now have adapted and moved with the market - meaning the financing techniques and strategies have changed to work in today's market. Courses are still well worthwhile and also the free information you receive while you are networking on the course is invaluable.

 However, should you wish to invest in a market outside the UK, I would recommend you source out investors who invest in these markets. The sourcing of BMV properties by leafleting works in the UK BUT may not work in a different market. If you search the forum, I'm sure I read leafleting did not work in Spain as their mentality & thinking was different (I maybe wrong though).