How to maximise your property investment growth
If you’re considering a property investment, there will be plenty of things on your to-do list – from defining your long-term goals, to organising your finance, to identifying the ideal location. Among these decisions, you should be thinking about the characteristics of the property you choose and its potential to grow in value over time. Most property purchases are good investments, but some will grow more quickly than others – here’s what you should look out for.
This is an important one. There’s no sense in buying a property if it isn’t a high-quality build – this will only mean problems down the road whether you are looking to sell or to rent. Both buyers and renters are attracted to high-quality housing that will stand the test of time. Without these assurances, there’s a good chance that you’ll need to spend a lot of money on the property to get it up to scratch. This doesn’t mean you need to buy a perfect home – of course, you can buy a place that needs a touch up here – but the foundations should be strong to ensure your investment is long-lasting.
When you go to purchase a property, try to avoid buying an apartment in a new block with 500 identical units. If there are lots of other similar apartments, your property will rarely stand out in the market either to renters or to future buyers. Most people are looking for something special that they will connect to – that’s how your property will rise in value over time. If you can only afford a small apartment in a huge block, you might want to consider a different area, or saving that bit extra on your deposit so you afford something that will stand out in the crowd.
Supply and demand
You should be thinking about the kind of people living in a certain suburb before you commit to your purchase – after all, these will be your potential tenants. If you are buying a one-bed unit in an area that is predominantly families looking for three or four bedroom houses, you’re going to be limiting your market. Do some property market research to determine which kind of homes are in demand in your area, and make sure the property you choose is suited to the demographic.
This is what we like to call the “live-ability” of a property. Take a walk around the local area near your potential investment and give it a walk score; for example, can you walk to the nearest public transport, the high street, the supermarket, schools, a local park? Try to embody your future tenant as they are searching for a property – yours might be one of five inspections they attend in a day. If it has good access to local attractions and amenities, the chances are it will appear towards the top of their list.
Get professional advice
These are just a few quick tips for how you can maximise your property investment. For more insights, check out the video below or head over to the Reventon video hub for a wealth of information. If you have questions, or you’ve decided you’re ready to invest, why not book a free consultation with one of our team so you can talk through your financial goals and receive a free personalised investment plan tailored to your circumstances.