For property investors, buying cheap property is good but it does not necessarily mean that it will earn good profit as well. Now the question arises what are the means to find properties that are available at substantially low value in comparison to the prevailing market value? In other words, how can you locate below market value property?

In your search the first step is to find out an area about which you can be sure that its demand in future will be greater compared to the supply. Now the question arises, 'How?' Well, you will check a number of factors that may help in the development of the area your intended property fall in. Find out new rail as well as road links that may begin in future. Also, if there are some possibilities of few big organizations being shifted to that area, then it clearly means that it will bring good job opportunities. As a result, people will move to that place to fill the available vacancies that ultimately lead to the increase in the demand of housing for the workers. There are also a number of plans for area regeneration with the city's administration. Keep in mind, once the regeneration has been completed; it will result in the higher value of the property.

Next thing that property investors need to take into consideration is to decide upon the type of cheap property that they intend to buy. Here also you need to do a lot of research. If the demographics of the area you have chosen show populace of more elderly people in the area, then it is quite possible that single storey accommodation will be in demand. Conversely, if there is a lot of young populace, then you may expect the high demand for apartments.

After deciding on both these factors i.e. choosing the area and type of property, you now need to begin compiling of all details about cheap properties available. To do this, you can take the help of internet resources. You can easily find sites specialized in dealing in cheap property for renovation or development, thus some of your work will be reduced.

After having a good idea about what is available; next thing property investors will require to do is to find out the cost of average property in your chosen area. This may also be done with the help of internet. Here, you will get a lot of information about the area including the location of schools and shops, parks and hospitals and so on.

In the end, take a visit to the area and prepare a shortlist of available cheap properties that you intend to buy and inspect. Also, do not forget to pen down the contact numbers of property agents from their boards outside their office. By doing so, you can zero in on whether the property you intend to buy is really cheap and the issue of supply and demand. As for property agents, they prefer to give their helping hand only if they hope to get some business from you.

Lastly, remember that you are in no way required to pay for asking price of the intended property and a lot of bargaining is must.

Mark Rotlon has made a special DVD available to all Australian interested in Making Money, in real estate without any money.