Below Market Value, BMV, means that you acquire a property at a price that is lower than others pay for a similar property. There are many reasons for a vendor wanting to sell a property below the average market price, such as they need a quick sale to release funds, there maybe a relationship breakdown or economic instability and the vendor wants to have cash.
In different areas of the UK you can find different amounts of BMV properties. Tungsten MG concentrates in Kent and the South East of England is notorious for having limited BMV properties, so it makes our searches more creative and networking is key. But to the North such properties are easier to locate which is why we have started to look at areas further North.
Top 4 places for HNMI to live are
the United States, Japan, Germany, and China (2017, https://www.investopedia.com/)
High Networth Individuals: HNWI
A High Networth Individuals: HNWI is a term Tungsten MG came across when we began to look at investment. When we were looking for investment beyond our immediate circle we had to look to HNWI. These individuals have an annual income of £100,000 or more and have net assets of £250,000 or more excluding primary residence or any benefits payable on termination of service, death or retirement. These individuals are normally regular investors so are able to way up and understand the risk of investment, and they appreciate the long term vision of some investors.
Return on Investment: ROI
Return on Investment is a term used when calculating how well a potential investment will perform. You can use ROI to compare a potential project against other investments you have done. By calculating the amount of return on a particular investment you can then compare these figures to those of real projects you have completed and decide if it is one to pursue.Â
Gross Development Value: GDV
Gross Development Value: GDV can be seen as the most important property developers metric as it enables you to calculate the end market value once the development has been completed.
There are many ways of calculating GDV but one example is
Profit = GDV – (Construction + Fees + Land)
60%
of the UK have a mortgage VS 30% of the German population who have a mortgage (https://www.independent.co.uk/)
Commercial to Residential: C2R is the conversion of a commercial unit, such as a pub, office, retail unit to a place to live. There has been a big rise of C2R due to
a change in the high street landscape and many people buying online which leaves retail owners unable to pay their rent
a change in the way we work. Many employers can ask employees to work remotely (at home) so the owner can find smaller offices to rent and reduce their overhead costs.
the ability to create beautiful places to live in well-loved buildings that now have no use such as historical landmarks
a change of moving away from gaining a mortgage to preferring rental accommodation. There is a slow shift in UK to move to follow those in Europe.
