It’s no secret that equity can be pivotal in helping you grow your property portfolio quicker so that you can achieve your dreams sooner! But building equity can feel like an endless race when you’re relying on the average growth of your property market. Qualified Property Investment Adviser, Bryan, has 4 tips you shouldn’t miss if you want to generate equity faster. Read on to learn more!
You don’t need major renovations to see a difference in your property’s value. Ultimately, improving the visual appeal and functionality of your property can have a positive effect! Here are some ideas:
Our second tip is more advanced, but it can be highly effective in accelerating your equity growth. Depending on your property, you may be able to reconfigure the floor plan to add an extra bedroom—turning a two-bedroom home into a three-bedroom or a three-bedroom into a four-bedroom. Identifying properties with the potential for these value-adding opportunities is key. For example, if the median price for a two-bedroom property in a particular suburb is $600,000 and a three-bedroom property is $800,000, but you can reconfigure the floor plan for just $75,000, you now have a three-bedroom home that could be worth around $800,000—yet your total cost is only $675,000. This means you’ve effectively created $125,000 in equity through a strategic renovation. Spotting these opportunities before purchasing can be a game-changer for investors looking to grow their portfolio faster. If you’d like to chat to our team about whether this is possible for you, and how to make it happen, feel free to schedule a free call with us!
Adding a granny flat can significantly increase your property’s value and equity over the long term. For investors, it creates a dual-income opportunity, making the property more attractive by offering the potential for higher rental returns and future resale value. For owner-occupiers, a granny flat provides flexible living space, perfect for larger families or multi-generational living, enhancing the property’s appeal as a long-term home. If the cost of building a granny flat is lower than the value it adds, you can instantly increase your equity, while also improving loan serviceability and creating opportunities for future development.
Have you thought about your property’s potential for subdivision and development? If you can capitalise on this strategy, not only can you add value to your property, but you can also maximise the returns it generates!
Our blog, How to make your subdivision and development project a success, will take you through the pros and cons and steps to success. Check it out!
