Distressed Property For Sale
The summer holidays are now over for most people and the wheels of business are starting to turn in earnest again.
Recent economic news has been mixed, however, and the outlook is still relatively unclear as the Coalition Government’s deficit reduction plan begins to bite. In the wider world, there was positive news from China and Australia this week as well as confirmed Eurozone growth of 1% over the second quarter of 2010.
Back in the UK, property prices fell for the second month in a row in August, according to the Nationwide Building Society. Prices fell 0.9% last month, following a 0.5% decline in July. The average house price now stands at just over £166,500.
These falls are welcome as the pace of house price inflation was faster than the corresponding growth in the economy. Furthermore, for purchases of distressed assets, the negotiating position is stronger when prices are flat, than when they are rising. Administrators and receivers (advising the Banks) are likely to be more willing to accept lower prices in these market conditions.
Here lies the unusual aspect of investing in bank repossessed property. Weak prices, negative sentiment and a flat market are good when we negotiate on price. Bold Spirit distressed assets division has made many millions of pounds for clients since the depth of the financial crisis back in September 2008. There are still many great opportunities out there and recent data reinforces our negotiation position.
We have recently acquired a number of great value properties in the North of England from developers who require quick cash flow as well as from administrators. Discounts to current realistic valuation are between 20-30% and yields are 7% plus.
Earlier this week, we received properties via a developer who wants to turn his unsold stock into cash. The properties are presently being marketed at £115,000 and we now have a RICS valuation at £100,000. Bold Spirit distressed assets have negotiated a price of £75,000 for our investors. This is a quality scheme at a great price. If you wish to speak to the team about this, or any other distressed property purchase, then call 0151 243 5431or fill in your details here.
If you would like to immerse yourself in property for a day and learn how to invest in bank repossessed property, then I would like to draw your attention to the Bold Spirit distressed property conference in Liverpool on Saturday 18th September 2010.
In my view present market conditions and opportunities presented by the recession have created the best opportunity to invest in property for many years. We have expert speakers from Begbies Traynor Tax, Blackstone Property as well as legal and finance experts specialising in distressed property.
The agenda for the day is:
- The economic and property market outlook for 2011
- How to buy distressed property below its true value
- Avoiding the legal pitfalls and managing risk
- How to save tax when investing in property
- Property investment strategies during a recovery
- How to raise finance in 2010/11
- The North West lettings and resale market
- Ask the panel Q&A session
There will also be the opportunity to have a private meeting with one of our consultants and/or a mortgage broker.
To book your place please click here. We are currently offering two for the price of one if you book before 11pm this evening.
And finally, if you require any help or assistance with mortgages, re-mortgages or insurance products, then Bold Spirit Financial Services can be accessed here.
Article Courtesy of Dominic Farrell
