46 | BMV MARKET ANALYSIS
www.opp.org.uk | APRIL 2010
Deal centre | London is drawing intense investor activity from all over the world
There are so many sharks and crooks in London that it’s tough to fi nd good partners, and there are too many people trying to get in the chain. We have people in the big fi ve agents to get product, but everyone else has it as well.
Colin Murphy, Torcana their prices are higher than those of
the private sellers and they also charge high legal fees,” says Rix. “They are keeping prices artifi cially high and are being extremely unrealistic.” Casacalida’s new auction site has some bank owned stock but it’s more interested in private individual sellers, according to owner Long. “A lot of people expect a bargain from the bank but can often get a better deal from an individual distressed seller,” adds Bob Callan of Bargain Quality Homes. For developers who don’t have the
luxury of time to wait out the market, there are numerous routes to market; but they need to consider whether discounts are realistic and if those selling really have access to enough serious investors to ensure a quick sale. “The best way to market BMV is to companies that have a ready supply of active investors who will buy property quickly if it fi ts the criteria,” says Farrell. “You normally have a short period to complete and legal due diligence is the main priority.” In part two of our BMV report we
look at the criteria used by investors, what they’re buying, how they’re buying it, and activity among individual buyers, syndicates and funds.
How should
BMV deals be marketed (ie media channels, specialist agents and language?)
Any agent pre- tending there is not a crisis out there in the market is going to be a laughing stock for their readers. This is a time for truth and honesty and lack of hype. The message should be simple for agents: we are your access to market for high-quality proper- ties being sold by vendors who have run out of time, money or both. Take advantage of the current buyers’ marketplace. Agents should be very realistic and accurate when providing justifi cations of the new value of a property. There are very few places in the world where it would be true to say the market is relatively unaff ected or prices are only down 10% or so. Potential buyers will see straight through you if you are not truthful and honest.
Stuart Law, Chief executive, Assetz
Which are the
easiest and hardest BMV markets to get into?
The UK is very hard to get into. Residen- tial is easier but commissions are low at 3-3.5% or 1k a sale – but people are chasing what- ever they can get. Spain is probably the easiest BMV market to get into because there is so much product and so many people selling. There’s no shortage of people to promote it either. You’ll see a 200k property being sold with 90% mortgage, 10% commission, 6% rental guarantee, furniture pack, etc but it’s not worth 200k. The banks and developers are relying on gimmicks instead of lower- ing prices, but today’s investor looks at hard facts. They know that realistic rental yields in Spain are 3-4% max, so it’s obviously over-valued. It will be horrendous for years until the banks wise up.
Colin Murphy, Managing Director, Torcana
Which
markets do you think currently off er the best BMV deals, and why?
Florida is good. There are 50% discounts on previous sale prices, with bags of stock depressing the market, and the sterling/dollar ratio remains at its historic level, despite the recent dip. Mortgage cash is available and vendors are hungry to do deals (in fact I’ve just made a TV show about it). Dubai is also good, if you’ve got cash. Up to 80% discounts are possi- ble. Spanish and Portuguese distress sales are plentiful, so long as you can obtain a high LTV euro mortgage and achieve local (euro) rentals. There are great deals to be had for cash purchasers in Thailand, too. France remains resilient but asking prices are fully negotiable (15-20% discounts) and mortgage LTV is as high as 85%.
Peter Parfait, Owner, TheIdeasFactory.com
MARKETING
DEVELOPER
BUSINESS
DESTINATION
PEOPLE
INDUSTRY
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68