Are in High-Growth or Gentrifying Areas

Location is the most important factor in property investment. Properties in areas experiencing growth, infrastructure upgrades, or an influx of buyers and renters will see higher demand post-renovation. Signs of a high-growth suburb include:

✅ New schools, shopping centres, or transport links.

✅ Low vacancy rates and increasing rental yields.

✅ Rising median house prices over time.

Have Solid ‘Bones’ but Need Cosmetic Updates

Structural renovations (like fixing foundation issues or replacing a roof) can be costly, whereas cosmetic updates (painting, flooring, kitchen upgrades) provide a better return on investment. Ideal properties for renovation have:

✅ A solid structure with no major defects.

✅ Outdated interiors that can be modernised affordably.

✅ Good natural light and a functional layout.

Have Untapped Potential for Adding Space

A property with the ability to expand or reconfigure its layout offers a greater opportunity to increase value. Look for:

✅ Large backyards suitable for an extension or granny flat.

✅ Unused or poorly configured spaces that can be repurposed.

✅ A second living area that could be converted into an extra bedroom.

Are Priced Below Market Value

Properties that require work often sell at a discount. Buying below market value creates an immediate equity buffer, reducing risk and increasing potential profit. Consider:

✅ Properties listed as “renovator’s delight” or “needs TLC.”

✅ Homes that have been on the market for a long time, allowing room for negotiation.

✅ Motivated sellers (such as deceased estates or distressed sales).