It has previously been believed that over time, properties will always go up in value. But what if you don’t have the time to wait? Or what if you’ve been waiting for five years or more already, only to find that your property price has decreased?
Don’t despair. There is a way around this. You can create instant equity when growing your portfolio.
The power of fast sweat instant equity.
First of all, you need to make sure you do extensive due diligence in order to find the best property prices.
This might mean increasing your network with real estate agents, so that they contact you first whenever they have a hot property listed, or using a professional buyers agent.
If you carry out thorough research, you should be able to find hidden gems all over Australia. The key is to aim for properties that are listed for around 20% lower than their market value.
Increasing equity through renovating
But what if you already have a property and its listed price isn’t what you had hoped? You can increase the property’s value by carrying out clever renovations which won’t cost you the earth but will increase the property’s value.
For example, if you drop $40,000 into a renovation, you should hope to see a return of about $70,000 – $80,000 if the revamp is carried out effectively.
As a general rule though, don’t invest more than roughly 10% of the property’s value into the renovation.
What’s a smart renovation? Adding an extra bathroom or bedroom can significantly increase the value of your property.
Other ways to find instant equity properties?
It’s important to consider supply and demand when on the hunt for a property that will make you money. For example, if there is an area that has a high demand for housing, but it is undersupplied, then this might be a good place to buy. But make sure you research why there is an undersupply and how quickly this supply is expected to be met.
When growing your property portfolio, the quicker you make money on your investments, the better. Follow our simple tips and hopefully you’ll see the power of fast sweat instant equity for yourself.