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Why you should consider buying investment property

People often consider property investment when it comes to finding the best way to invest their hard-earned money. Property investment is, and always has been, the most powerful type of investment for building wealth. The reason for this is due to one key concept: leverage – the ability to magnify your returns by using other peoples' money (in this case, it's usually the bank's money).

Say you have £20,000 to invest. One option would be to deposit the money in a savings account and accrue interest. Although this is a relatively safe option, after 10 years you've made virtually no progress at all, especially when you consider the effects of tax and inflation. Even at a high interest rate such as 6%, after 10 years you will only see your money grow to £35,817.

Stocks and shares are another investment option. In the 10 years leading up to the last recession, the stock market was very popular, however it’s not a safe bet by any means. It's hard to say what sort of return you might get on the stock market, but let's say you get 12% a year for the next 10 years – very unlikely, but sufficient for this example. If you could beat the odds and get a 12% return every year, you would see your £20,000 grow to £62,117. That’s a big increase on savings in the bank, but clearly is not guaranteed.

One of the great things about property is it enables you to leverage the £20,000 to purchase a £100,000 investment property (borrow the remaining £80,000 from the bank).

Say the property market slows down to an average of only 6% return for the next 10 years, a fair estimate in the UK. You make a 6% increase on the full value of the property, not just the £20,000 which you initially had. This is the power of leverage. 10 year growth would see your initial investment grow to £99,085 (£179,085 property value £80,000 mortgage). In effect you have increased your initial investment 5 fold in 10 years!

Identifying the right property investment deals for your portfolio can be a challenge, if you are trying to find the most lucrative investments. There have been a lot of investors who have benefited from the rising property market, but what happens when the property market slows and you still want to invest in property? The trick here would be to find investment deals that will do well both in a slow housing market as well as well as in a rising one.

So the question is what type of property will deliver instant profits in a slow property market, and where does one find property that will do well both in a slow market as well as in other times? The answer is to buy BMV property to profit instantly. Below market value (BMV) property means that you have instant equity that can be used in a number of ways to profit, including releasing the equity from a remortgage, releasing the cash from selling the property or simply holding onto the property for further long term gain.

Finding BMV property is not the easiest of tasks to achieve. Anyone who has tried finding genuine Investment Property bargains will know that it takes a lot of work. This is where OPA365.com can help. All properties on OPA365.com are listed on behalf of motivated sellers who are looking to sell their house quickly to move on in life or to resolve their personal and financial circumstances. These sellers value a quick sale above achieving the highest possible price, and are willing to lower their asking price in exchange for a quick sale.

OPA365.com lists BMV property from a variety of sources including estate agents, insolvency practitioners, banks and builders. By bringing all these BMV properties together to one place and providing all the information and services required to make an informed purchase, we make it easy to find the BMV property you're looking for.