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MPG Investments Review


by Oliver Thompson

MPG Investments Reviews

MPG Investments is one of only a few reputable and professional “cash for properties” companies at work in the UK, and have been trading for at least 5 years.

One of the smaller companies in this market, it still manages to uphold strong personal service and customer care. This is especially important as many people looking to sell their property for cash are often in bad personal or financial circumstances, so it remains very important that such sellers are treated with consideration and respect.

MPG Investments, by all accounts, manages to perform professionally and sympathetically, and there are no complaints about their service online that we could find.

The business model

As with similar companies, such as National Home Buyers and A Quick Sale, MPG Investments seek to buy property at “below market value” before selling them on to other companies running large investment portfolios which includes property, not least pension funds.

These companies therefore make a commission on the difference between price paid, and price resold at.

Unfortunately, the property market has attracted a lot of opportunists, both before and after the development of the property bubble. The result is a market so flooded with cowboys trying to exploit the market that the FSA has declared it should be regulated.

Also be warned that there are a lot of websites online claiming to be able to offer “cash for property” services, but most of these are nothing more than lead generation companies who then act as a middle man for commission to other companies, or else are new companies to the market who are looking to make a quick easy profit at consumer expense.

Cash for Property markets

It is important to remember that cash buying companies are a last resort for sellers in the property market, but in times of financial or personal difficulties, provides a way to sell a property quickly and easily.

The caveat is that in buying quick for cash, the company will seek to gain a discount on the property’s saleable value – so the seller will lose money for the privilege of a fast cash sale.

What householders need to be careful of is that a property is only ever worth as much as someone will pay for it, and estate agents have a nasty habit of trying to over-price properties, especially when they get more commission on higher price sales.

In that regard, what an estate agent claims to be the market value really isn’t the case unless the property sells – and in the current property market, many buyers are demanding discounts well below estate agent valuations in the first place.

So it’s important to remember that money you don’t have is exactly that.

An estate agent who claims a property to be worth £200,000, only for the seller to sell at £180,000, does not mean a loss of £20,000 – unless someone was prepared to pay that price in the first place.

It’s because of this that “cash for properties” such as MPG Investments, and other similarly reputable and professional companies have come to represent an important rung at the bottom of the property ladder.

Options for selling property fast

Effectively, if financial and personal circumstances means someone needs to sell their property quickly, there are few options.

Estate agents are not motivated to offer cheap pricing, and even if they will offer to sell a property at a discount, there is no guarantee that it will sell in any length of time.

Rightmove and similar property portals are filled with listings offering a reduced price, paid stamp duty, and similar incentives, but in a market downturn these properties can remain listed for months or years – often because the property was over-valued in the first place, or else has something fundamentally wrong with it.

The next option would be to take the property to auction. This can be a good way to sell fast, but does come with a few strings attached – firstly, your property will be sold at a discount, full stop. Secondly, you have auction fees and time to wait for auction before a sale can go through. Thirdly, though, there is never any guarantee that the property will sell at auction in the first place.

Cash for property companies such as MPG Investments are the last step after that. They will only offer a discount price (actually, often quite similar to auction price) but can conclude the sale very quickly indeed, with MPG Investments claiming a sale can be concluded by them within a week if using their solicitors.

While a discount price can feel like a kick in the teeth, especially if your personal or financial circumstances are already poor, but at least it does guarantee the property will be sold, and usually very quickly indeed.

This is certainly very helpful if your property also needs attention, or else there are other reasons why it may not sell easily at the estate agents even under normal property market conditions, and its this level of surety that helps make people’s minds up on going this way.

Conclusion

MPG Investments is a reputable and professional company with few if any complaints about its service.

The real warning is to expect to have to discount your property value – but if the property isn’t selling, it would need discounting via an estate agents or at auction anyway, without either method offering a guaranteed sale.

If circumstances are such that you really need to sell now – such as facing repossession, going through a divorce, moving abroad, or have a property otherwise difficult to sell – then certainly MPG Investments may be worth considering.


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News posted: October 15, 2009

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