People may invest in property for different reasons. Many would do so to have their own home. Others might invest to gather rental income or else as a summer home to be used for a few months during the year. In most cases, people would try to seek properties that represent value for money and deliver a good return in the future. It is quite common for people to seek the best possible price, however many will experience the fact that cheaper does not necessarily mean better. In this article, we shall be discussing why a property may be cheaper, and how this does not necessarily translate to better value.

Property may be located in a less desirable location

One of the reasons why a property may be cheaper than what one would expect can be related to the location. In real estate, location plays an important role and you may find that investing in the wrong spot would be detrimental for you, irrespective of the size of the property. If for example you are seeking a property for rental investment, you might be better off with something smaller in a better location, rather than somewhere larger in a less enticing locality.

Property may not be finished or even constructed

One may be attracted to the prospect of buying a property which is not finished or on plan. This would typically come at a cheaper price than once fully complete. Some buyers may be comfortable with the risks associated with buying a property on plan which can include that the actual dwelling might not be delivered exactly as per the drawing provided. People may also underestimate the time and budget required for finishing. If you are willing to invest time and enable more budget flexibility, such approaches may be beneficial, however if you want the property to be available fast, that is another matter, especially if you do not have experience in these projects.

Property may need significant renovation

Whilst a property may be habitable, it can be for sale at what appears to be a good price simply because of the renovation works required. The property may require some hefty pricing including investments in roofing, electricity, plumbing and plastering, which would in turn imply new bathrooms and tiling.

Price is an important factor, but as can be seen through these examples, property acquisition needs to be seen in its full context.