Caution when buying below-market-value properties
Joseph Wong | 06 Jul 2018 00:30
Many property players in the market are now deploying the below-market-value (BMV) sales tactic to entice buyers to seal the deal fast on the back of a slowing property market.
Similarly, property agents are also using this BMV method for sub-sale properties. The onus is on the buyer or investor to perform due diligence before entering a deal that could prove disastrous in the future, as they could end up with a painful lesson.
Generally, BMV relates to properties for sale below market valuation, says ExaStrata Solutions Sdn Bhd CEO Adzman Shah Mohd Ariffin.
“These include auction and distressed properties, too. Even those designated as affordable properties can be BMV for those in prime locations in the Klang Valley due to the price ceiling.
“Others include unsold stock held by developers for a long time. Lately, new property launches have been promoted as BMV properties too,” he says.
Question is, if a property market is already deflated, are these properties still disconsidered BMV since the price has fallen?
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