Buying cheap property for sale and selling it quickly and making huge gains is the aim of most property speculators, however buying cheap property for sale often leads to disaster for many property investors.
They simply don’t understand one fundamental fact:
Cheap property for sale is cheap for a reason!
No one wants it.
Now, some cheap property for sale will become expensive but most will not and it is here you need to balance the risk to reward carefully and keep these two points in mind:
- Don’t buy markets that have not turned up
If you are buying an area of your home country or are buying cheap property for sale in the booming overseas markets don’t buy a market that may take off for reasons you believe in, look for the facts to point to it has taken off and that means rising prices.
Of course, we all want to buy the bottom of a market but the risk is high.
If you want to be a pioneer go ahead, but keep in mind some made huge rewards and most got the arrows and its the same in property investment.
Property trends last for decades, so what if you miss the absolute bottom? If you can still buy cheap property for sale and make triple digit gains who cares?
- Buy only locations where the infrastructure points to higher prices
This means buying the cheapest property for sale with lowest risk to highest reward.
Normally, this means buying near new infrastructure.
New roads, airports, marina’s etc are great locations. When their built, the herd comes in and property values soar.
Don’t buy a property in the middle of nowhere and think that it may increase in value!
You may be waiting a long time to see grow, if at all.
By Martin Fisher