3 ways to tell that your Investment Property is right for YOU

When it comes to property investment, it’s safe to say that creating value, AKA equity, is one of the key elements in achieving your financial and lifestyle goals. 

Why?

Well, it’s not just because it’s great to know that your property has increased in value…

It also puts you in a really strong position to continue growing your investment portfolio, through leveraging that equity into making more property purchases. 

So, here are my 4 top tips for generating equity in your investment property in 2024 and beyond!

But, before we get started – what exactly is EQUITY?

Well, when it comes to property investment, it’s safe to say that for most of us, our main goal tends to be creating financial stability – and equity is a major factor in this.

As explained by the Cambridge Dictionary, the formal definition of equity is all about the money value of a property after debts have subtracted. 

Or more simply, equity is how much money you’ve made on a property.

And this doesn’t have to be when you sell it – it can also be the estimated value, which is important if you want to take out a loan to continue growing your portfolio. 

When it comes to property investment, building equity over the long term is key to growing a solid, quality portfolio, and achieving your ideal level of financial freedom. 

So, let’s jump into those 4 ways to create equity…

1. Optimise the Location

If you’ve been hanging around InvestHer for a while now, you’ll almost certainly know all about how much we love LOCATION when looking for an investment property. 

And it’s not really about thinking, ‘Wow, this is a lovely street’, or ‘yep, I can picture myself living here’…

Instead, it’s about looking at what really makes a location a good option from an investment perspective. 

Properties in locations that have a high demand, and low supply of new houses, alongside favourable macroeconomic factors, such as unemployment rates and migration patterns are what really work.

As demand increases in locations such as Melbourne and South-East Queensland, and as migration numbers continue to climb, there will continue to become incredible opportunities for investors wanting to buy in the right LOCATION. 

Alongside this, a strong location also has quality infrastructure. Good roads, public transport, parks, sporting facilities, shopping centres and hospitals go a long way towards building the necessary demand for a growing property market. 

Our Research Team is obsessed with understanding what makes a good location and ensuring that your investment stands the test of time. 

Quality location and equity goes hand-in-hand, because it is all about identifying where the long term value lies!

2. Look for Double Story Homes in Owner Occupier Areas

Looking a little deeper into the relationship between location and equity growth, we find ourselves looking at specific types of areas. 

In an owner-occupier area, people that own the properties tend to actually live in them. This makes for a more desirable area to live. 

This idea is extended in areas where 2 storey houses are common. Because of their perceived stability in value, paired with the livability, it makes for a great place to call home.

Investing in this kind of area allows you to piggyback off this perceived value, organically improving the value of your property. Even though you may not be building or buying a double story place, this kind of investment helps ensure that you are creating equity in your property before tenants have even moved in. 

3. Infill Estates

We LOVE infill estates

To put it simply, an infill area is a small allotment of property, typically around 10-20 lots, that forms an estate in an existing built-up area. They are great for a couple of reasons:

• Lower demand and awareness for the property (they’re normally purchased wholesale).
• Proximity to existing infrastructure and amenities. 

With this, comes that idea of generating equity, both from lower perceived value, prior to investing, and general demand for the location. 

This is something that’s super pertinent as we move through 2024, in a housing market that’s experiencing a severe lack of supply, providing property in established locations is HIGHLY sought after. 

4. Full Turnkey

When it comes to a finished investment property, you ALWAYS want to make sure that things are completed FULL turnkey. 

Why?

Honestly, it can be the difference between having your tenants move in straight away or spending an extra $75K making the house liveable. 

When people buy house and land packages, it happens all too often that bits and pieces are missing, meaning that time, money and stress is added onto that final stretch of the build. 

So, we’ve got a list for you, just to see all of the things that will ensure that your investment property is full turnkey:

• Internal painting
• Driveways
• Air Conditioning
• Built-in Kitchen Appliances (Oven, Stove, Dishwasher)
• Blinds
• Landscaping
• Window Locks
• Fencing
• Carpet

The investment in these types of features takes things to the next level, providing great value to your investment, helping increase that equity in the property. 

As you can see, creating equity in your investment property isn’t always about doing things that are tangibly creating value. Instead, it’s about a combination of identifying the right conditions, and building quality into your investment. With this recipe, and by keeping these 4 factors in mind, it will go a long way to helping you turn an investment into a quality, long term, equity generating home. 

Interested in learning more about getting started on your property investment journey? Want to chat more about building your tailored InvestHer Property Plan?

At InvestHer, we’re all about helping you to achieve your financial goals through strategy-backed property investment, whilst also helping you become more confident in your financial future. 

Are you ready to take your next step forward?

Give us a call on 0422 991 086 – we’d absolutely love to chat!