What does buying a property cheap mean to you? Is it that it is the lowest priced, biggest property you can get or is it that it is a property that is lower priced but gives you a high return?
It’s important to get this distinction as novice investors can make a lot of mistakes when trying to buy cheap.
It makes a lot of sense to limit your investment on the first purchase you make, but equally, it is naïve to think that the cheapest properties are going to perform the best.
If you are looking at lower-priced properties, first watch our video on ‘How much do I need to invest in UK?’ .
Your main focus should be working out your budget, be very realistic here. What exactly are you willing to spend. Then work out the areas which will give you the very best returns for your investment.
Ignore the size of the property in many respects or the number of bedrooms. The main focus is Return on investment.
Remember rental yield is a direct reflection of risk. Buy in the best city centre location and you will get a lower yield.
There are some great locations at lower prices though, some of the great target locations are those within 30 minutes of Manchester or Birmingham. The North East of England can throw up some additional options with higher yields but you can be sacrificing overall return for similar pricing.
If you want to look at cheaper properties, look at the outskirts of growing cities, aim for locations where a new tram line or train line is being built and watch your investment flourish.
