The residential property market across Australia is moving in the right direction. But what can’t be denied is that different parts of the market are moving at different speeds.
Some sectors are showing signs that they are well and truly “past it”. Their “glory days” so to speak are gone and it’s unlikely they will come back in the foreseeable future.
But there are many areas that are just starting to really gain traction and others that are really blasting off.
Whichever you choose, the important thing is to be in the game. One way to ensure you are going to get some growth is to force it. ☺ Yes, you can “force growth” out of an investment property.
The most obvious way is to add value to your property. You can do this in many ways.
Do you have a vacant block of land? Now is the time to build on it. Rates are very low meaning the cost to build is more viable now than at other times.
You can also renovate old stock. Revitalising an older investment property with carefully chosen renovations, can add significant value to it. Again, the cost to borrow for renovating is very low at present.
Subdividing a larger property is another way to force growth and add significant value to your investment. As is getting permits to undergo developments.
At Investors Direct we have recently been getting a lot more active on the development and construction front. It seems that every day now a client will approach us to assist them with maximising opportunities within their portfolio. And we are more capable and resourced than ever to bring out those kind of results and outcomes.
What is not commonly known is that most local governments review their planning laws from time to time so it is a good idea to bring yourself up to speed with what you may be allowed to do with your property. You may be allowed to do more than you thought. The local council planning officer is usually a great place to start or have a coffee with your local developer/mentor to see what’s happening in your area.
If you are short of time then feel free to give us a call and we can have a look it for you. We are quite open to receiving proposals on development and construction.
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