Are Your Real Estate Plans Positioned For Growth?

Are Your Real Estate Plans Positioned For Growth? 

Real estate is something that calls for decisions to be made by the head and the heart. But which one are you leading with?

It’s fairly easy to look back at the performance of the housing market over the last 20 to 30 years and envy those who got into the market ‘at the right time’ or ‘made the right decisions’. But are we looking back with rose coloured glasses? 

Cities, markets and our lifestyles have certainly changed, but there is still money to be made in Real Estate. If you’re hoping to look back fondly on your real estate choices in 10 years time, you need to start thinking with your head. 

For those who are leading with the heart and waiting to own your perfect home, step back and think about if your goals are holding you back from entering the market and if you’re stretching yourself financially. If your answers are no - that is great, go out there and find that perfect home. If you answered yes to one of those questions, read on. 

Buy to renovate

Buying to renovate is nothing new, and it seems to be increasingly difficult to find something that hasn’t had a new slapdash kitchen or bathroom tacked on prior to sale to get a better price at auction. However, there are still great gains to be made if you’re handy with a paintbrush and have some trusted tradesmen on call. If you’re looking for a ‘renovators dream’, speak to your agent about off market sales, as often, the owners who aren’t willing to do the presale touch ups, are also the ones who are looking to save on advertising expenses.

Channel 9's The Block continues to tap into large scale renovation opportunities in St Kilda.

Buy where the growth is and rent where your lifestyle is

For some, the prospect of renting any longer is unbearable but finding a good rental property can make life a dream. You’ll save on repairs and maintenance, live where you want and have confidence that your investment property is improving your financial position. If you’re looking for security and peace of mind, ask the leasing agent about the plans of the owner - they’ll often be able to give you information that will help you make your choice, like if the owners have gone overseas for a year or if the property is a long term investment. From here, rent for a year whilst you settle in to the property and area, and if you’re happy there, sign on for a longer term lease.  

It can be a mental hurdle to think past buying your ideal home. However, once you overcome that hurdle it is incredibly liberating and exciting to shop around to see what your money can buy. Find a property with a good yield with some potential for capital growth. To get started, look at what’s advertised in the areas adjacent to your ideal location - keep an eye out for smaller suburbs that are often lesser known, you might find yourself surprised.

Melbourne's inner west is still showing great potential for growth.

Investing for investing

If you’re a first homebuyer, first time investor or even a seasoned investor - have you thought about a studio apartment in a branded suburb? It may not suit your own personal needs, but students and young professionals can pay a premium for their own self contained space. If you have a reasonable deposit and the property has a good rental yield, you might be surprised at how collectable studios can be - you’ll soon be on your way to a tidy real estate portfolio. 

This one bedroom apartment offers European living in the heart of Toorak. 

No matter what your plans are, getting good advice is paramount - speak to your agent today.