Buying a cheap property for sale seems easy, but for the bulk of investors who do it, they end up losing money. Because?
Because they make basic mistakes.
If you want to make big profits buying cheap properties for sale, avoid these common mistakes and you can make big profits.
1. Buy the cheapest
Many investors simply buy the cheapest property they can find and assume it MUST increase in value.
Keeping in kind is cheap for a reason!
Basically nobody wants it.
Unless there are solid reasons why the property should go up (not just your opinion), avoid these properties.
You should not buy the cheapest, but simply buy a property at a competitive price that offers good risk to reward.
2. Look for solid reasons
This means looking at the facts and seeing if the cheap property for sale you have targeted is set to increase in value.
A good way to do this is to look for cheap properties for sale near areas that are increasing in value.
People will then look to overflow into adjacent areas driving up prices.
Gold
Buy in areas where infrastructure and amenities are beginning to be built, which will increase property values in the near future as people move to take advantage of new facilities.
3. Wait for prices to start rising
This may mean you miss the bottom, but you have the trend on your side.
Once cheap properties for sale start to rise like a vacuum cleaner, more people want to jump on board and push prices even higher.
If there are strong reasons to buy the property, keep in mind that property trends can last for many years and there will be a good upside for a considerable period of time.
4. Decide what you want and go
You need to decide on a realistic target figure and then take your profit and look for the next opportunity.
Let’s say you’re aiming 100% and prices hit your target, don’t stick with what you want to exit and look for the next one.
5. Get more for your money
If you want to make really big profits with minimal outlay, buy cheap property for sale abroad in emerging economies.
Because?
Simply because it is cheaper in many destinations and the profitability and upside risk are lower.
Established economies typically do not offer the dynamic growth you get from emerging economies.
What is a good destination?
Try looking at Costa Rica.
It’s only a 3-hour flight from the US, its stable encourages foreign investment, and the cheap properties for sale here offer a fantastic opportunity:
Beachfront property here costs up to 70% less than in the US.
This has led to a large influx of baby boomers looking for ocean view property and a great lifestyle.
Therefore, buying close to existing resorts and expanding the infrastructure can generate huge profits.
Consider this:
A property that was only $30,000 15 years ago near the popular resort of Jaco is worth as much as $800,000 today!
Is this boom slowing down?
No, as baby boomers seek to maintain their standard of living, they will continue to flock to Costa Rica and prices will continue their upward trend.
So if you want more for your money, find yourself 3 hours south from the US to Costa Rica and you’ll be glad you did.
