The value of housing

The housing market is very interesting. I was recently interested in a 2 bedroom flat for 115k. I phoned the estate agents about it, and there had been a bidding war, and it was now up to 140k!! I wasn't going to step into that battle, so I looked further afield for houses. I found some good looking stuff on Rightmove, and I've had a few viewings.

My criteria is to buy something as low priced as possible, in an ok area, that can be rented out immediately. The more money you pay, the bigger and better house you get, but less rental return on investment, and a bigger mortgage to pay. I want property as cheaply as I can get it. Theres no point in buying a wreck, as it will probably cost the same amount overall to do it up to the standard of a normal house. New build type houses are mostly cheaper than older victorian houses, and require less maintenance, so seem like good investment prospects.

One of the biggest lessons I've learned from checking the housing market is that there are no underpriced bargains. If any genuine bargains do turn up, they will be hotly contested by other investors and the price will go up so it is no longer a bargain. There is no such thing as "below market value", the market is what it is.

I'm selecting property based on my own research and decisions, with no help from my mentors. They are probably busy enough with their own stuff, and I doubt they can give me the level of assistance I would require from them.  I have enough confidence in my moneyseeking abilities to select properties on my own decisions. If anything goes wrong, I only want myself to blame.

Q: what if the housing market drops? A: By buying property as cheaply as possible losses are minimised. In the long run, property always wins. I'm not in this for a fast buck and I expect to hold investment properties forever.