Cheap property. You think you're buying a bargin. You're actually buying a headache. Cheap goes by another name: problematic. Stay away from it. Full stop. Not because it can never work. Because the maths rarely holds up once you look past the headline return and all the issues you're buying as well. First, the tenant. Very few people choose to live in a £30,000 (or even £50,000) house if they have other options. The tenants who do often come with a higher risk of arrears, which means more void periods and more time spent chasing rather than earning. Second, capital growth and exit strategy. Investors are not buying this stock. First-time buyers are not buying it either. With neither group competing for it, there is little pushing the price upward over time. Third, maintenance. A damp course. A roof. A full rewire. Any one of these can erase several years of the modest profit this kind of property generates. If the refurb is rhay same price as the house, is it really worth it? The better approach is straightforward. Look past the headline number. Buy sensible, spend more and play the long game. Buy a better property in a better area with decent tenants, genuine scope for growth and lower maintenance risk over a long hold. Wherever you buy, know the area. If you don't - find someone who does. Don't work with a 'sourcer' who points you toward the cheapest stock because the numbers look exciting on a spreadsheet. Work with a Partner who has managed enough tenancies to know exactly where that excitement runs out. Want to know what that looks like? DM me. Sensible Investments, Unrivalled Support™ #cheapproperty #theteacherlandlord #btl

Posted by James Lovell-Smith at 2026-06-26 07:47:00 UTC