This is probably the most important disadvantage of cheap property:

* Property is always cheap for a reason.

Frequently property is cheap because the area in which it is located is economically disadvantaged, has high levels of deprivation, or may have social problems.

And that makes it a different investment proposition, on several levels:

* Property values in these kinds of areas can be volatile. They may appreciate slowly in good times (or maybe not at all), peak late, and then depreciate quickly in bad times.

* Property in these kinds of areas may be difficult to sell, or may even be impossible to sell in some circumstances.

* Property in these kinds of areas offers generally poor prospects for capital appreciation.

* Letting prospects may be limited to certain types of tenant demand, eg. Housing Benefit tenants, limiting the rent that may be charged.

* The area, type of property and tenants involved could require greater management time and expense.

* Scope to add value with renovation or development may be very limited. ie, improved or developed property may only increase in value by the cost of the work – or potentially even less than the cost of the work.