Unlocking Discounted HMO’s With RICS Valuation

For property investors, securing a strong deal is crucial to long-term profitability. One powerful way to achieve this is by purchasing properties that offer immediate value through discounted prices, often backed by RICS (Royal Institution of Chartered Surveyors) valuations.

WHAT IS RICS VALUATION?

A RICS valuation is an independent property assessment conducted by a qualified surveyor, providing an accurate market value based on factors like location, condition, and recent sales. It ensures reliable and unbiased property appraisals, widely trusted in the real estate industry.

WHAT ARE THE BENEFITS?

When an investor acquires a property below its RICS valuation, they instantly gain equity in the property. This means that the investment is already "in the green" from the outset, providing immediate financial benefit.

The key advantage for investors is that these types of deals allow them to secure properties at a lower price than their market worth, reducing the risks associated with property investments. Not only does this discount provide an instant buffer against market fluctuations, but it also opens up potential for future capital appreciation. As the property value increases over time, the investor can sell or refinance at a higher price, capitalizing on the difference.

Additionally, properties bought with value through RICS-backed deals can offer better rental yields. Investors who purchase below market value may find that they can charge competitive rents while still generating a strong return on investment.

CONCLUSION

A RICS valuation is an essential tool when buying an HMO below market value. In short, by leveraging RICS valuations to buy properties at a discount, investors can position themselves for greater financial success, minimizing risk and maximizing potential rewards.