Looking for an easy way onto the property ladder? Or perhaps you’re looking to invest in real estate on a tight budget? Whilst property prices are at an all time high, not every property is utterly expensive. Several factors can often bring down the cost of property. Here are just a few different ways to find cheap property.
Consider the location
The biggest factor that affects pricing is location. For the price of bedsit in London, you may be able to get a three bedroom house in rural Scotland (this guide to property price by area is worth looking at). There are even factors on a more local level that can affect the price. For instance, property on the outskirts of a town is generally cheaper than in the centre and proximity to schools, parks, train stations, airports and roads can all make a difference too.
Size is also an important factor to consider. The bigger a property, generally the bigger the price tag. The amount of bedrooms often has a huge impact on the price – a two bed house will be a lot cheaper than a three bed house. Even if you feel you need that extra bedroom, there may be the option of extending when you move in or even converting space such as transforming the attic into an extra bedroom.
Buy from an auction
Auctions are great places for picking up cheap property. Some of this property may be in poor condition and require renovating (sometimes advertised as ‘as is’ property), while other property may have been repossessed (sometimes called ‘foreclosure’ property). It’s worth familiarising yourself with the auction process first – the likes of this MMOA explainer could be worth reading. Always look around properties before bidding on them.
Buy a new build
New builds can often be cheaper to buy than older property. Recently, modern property developers have been trying to build property as cheaply as possible in order to bring down the price of property. Because there’s no seller trying to make a big profit on these properties, you generally get more for your money than an older property (although some people may prefer the character of an older home). New builds do have their hidden running costs to be wary of (many new apartments have high service charges), but generally you’ll also save money in the long run compared to an older property as you won’t have the wear and tear to deal with.