Buying cheap property for sale seems easy, but for the bulk of investors who do it they end up losing money. Why?
Because, they make basic errors.
If you want to make big gains by buying cheap property for sale then avoid these common errors and you can make some big profits.
1. Buying The Cheapest
Many investors simply buy the cheapest property they can find and assume it MUST increase in value.
Keep in kind its cheap for a reason!
Basically no one wants it.
Unless there are solid reasons why the property should increase (not just your opinion) then avoid these properties.
You should not buy the cheapest but simply buy competitively priced property 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 of doing this is to look for cheap property for sale near to areas that are increasing in value.
People will then look to overspill into adjacent areas pulling prices up.
Buy in areas where infrastructure and amenities are starting to be built, that will increase the properties value in the near future as people move in to take advantage of the new facilities.
3. Wait for prices to start to rise
This may mean you miss the bottom, but you have the trend on your side.
Once cheap property for sale starts to increase its like a vacuum cleaner, more people want to get on board and push prices up further.
If there are solid reasons to buy the property, then keep in mind property trends can last for many years and there is going to be good upside for a considerable period of time.
4. Decide what you want and get out
You need to decide a realistic target figure and then take your profit and look for the next opportunity.
Say you target a 100% and prices hit your target don’t hang round you have what you want get out and look for the next one.
5. Getting more bang for your buck
If you want to make the really big gains with minimal outlay, buy cheap property for sale overseas in emerging economies.
Quite simply because it’s cheaper in many destinations and upside returns and risk are lower.
The established economies don’t normally offer the dynamic growth you get from emerging ones.
What is a good destination?
Try looking at Costa Rica.
Its just a 3 hour flight form the USA, its stable encourages foreign investment and cheap property for sale here offers a fantastic opportunity:
Beach front property here is up to 70% less than in the USA.
This has led to a huge influx of baby boomers looking for ocean view property and a great lifestyle.
Therefore, buying near existing resorts and expanding infrastructure, can give tremendous gains.
A property costing just $30,000 15 years ago near the popular resort of Jaco, is worth as much as 800,000 today!
Is this boom slowing?
No, as baby boomer's seek to maintain their standard of living they will continue to flock to Costa Rica and prices will continue in their upward trend.
So if you want to get more bang for your buck look 3 hours south of the US To Costa Rica and you may be glad you did.
SEE THE POTENTIAL FOR YOURSELF FREE INFO
If you want to know more about cheap property for sale in Costa Rica and the potential for profits in this beautiful and investment friendly country go and see the best deals and grab your free reports at: http://www.net-planet.org/costarica.php