Everyone wants to buy cheap property, but for an investor this is especially important. As the old adage goes your profit is made when you buy the property not when you sell it. Knowing how to spot a bargain and trusting your instincts is part of the battle.

Dealing with such large sums of money can cloud judgment and prevent you from making rationale decisions. There are so many things going through your mind regarding price, location, rentability and so on that you can sometimes be overwhelmed by the ifs and buts.

The best way to buy cheap property is to keep it simple and look at the numbers. You should look at what the property was last sold for. Look at the local property market and its performance. Identify local rental prices and how your property compares. You match your property with its intended market and ascertain if it would fit their requirements. If it doesn’t, how much would it cost to do the job? Always get multiple builders quotes.

Most importantly look at the affordability of the purchase. In black and white calculate your expected return, if the figures don’t tally, don’t buy. Another important tip is to look at the reason for selling is there any room for negotiation. This can potentially save you thousands.

Buying cheap property is not easy but plenty of people do it sometimes its plain luck, but the best advice I can give is to look at the numbers and make your decision based on them.

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1. Looking to buy cheap property?
2. Looking for cheap properties for sale?
3. BMV Property – The basics of property investing