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'Cash is King' for BMV Brits

Jaimie Kanwar

With the credit crunch biting, Brit investors are scouring the market for bargains...

This is definitely the case for readers of The Telegraph, as Property Editor Anne Cuthbertson explained: “Telegraph readers are keen to invest in Below Market Value (BMV) property. Our readers are actively looking for ways to exploit the credit crunch. Many of them have secure incomes and substantial cash to invest and will see the current market as an ideal time to buy property cheaply”.

Nick Hopkinson, Director of Fruitful Property agrees: "Cash is king currently and while some people are struggling with repossessions, personal debt and higher mortgage payments, it's a property buyer's market for the financially savvy.

The benefits of buying property off a distressed seller or bagging a repossessed property bargain are obvious: immediate buffer against any short term price falls and high yields delivering immediate cash flow.

Specialist investors 'well placed'

However, Ms Cuthbertson noted that attending auctions and trying to negotiate with desperate vendors directly 'can be very time consuming and risky if you don't have previous experience', adding: “Working with a specialist agent who has a successful track record and understands your needs makes a lot of sense for the kind of busy, successful people who read The Telegraph”.

Mr Hopkinson added: “Specialist investment advisors are well placed to negotiate exceptional discounts for our busy clients at the moment. Indeed, our investors are buying houses and flats at 20+ percent BMV with high rent yields, often over 6 percent delivering immediate positive income currently. This opportunity was simply not around 3 months ago and will disappear as soon as the credit crunch eases, now is the time to buy.”

“Market fundamentals of chronic supply shortage and long term growing demand for residential property, particularly in London and South East England make this a very sound long term investment, provided you have cash for deposits and budget properly for the long term”