C&G’s Guide to Spotting a Home with Potential
Potential – for many, it’s the magic word when it comes to strategic property investment. In today’s blog, C&G share key ways to spot a home with rich with that all-important mystery element: potential.
When we discuss ‘potential’ in relation to property purchases, we mean real estate with the potential to grow in value, or be developed to offer extended lifestyle value. But just what should you be looking out for as a savvy investor or speculative owner-occupier?
Growth Areas
One of the best ways to ‘time the market’ is to invest in an up-and-coming area before it booms. Like any investment strategy, there is always an element of risk to consider - but there are signs to take note of which indicate a suburb is on the up. Keep an eye out for signs of gentrification – new café openings, trendy new developments, an influx of tenants and a general ‘buzz’ around the area.
You may find opportunity by striking while the iron is hot in areas that neighbor booming suburbs. For example, when buyers began addressing the prospect of being priced out of popular inner-northern suburbs Brunswick and Fitzroy, their attention duly turned to Preston, Northcote and Reservoir.
Growth may also follow new infrastructure developments. If an area was not previously well-located for access to the CBD, keeping abreast of new train line installations or updates to public transport links could set you ahead of the real estate investment curve.
Unrenovated Opportunities
Homes that haven’t been updated for a considerable amount of time can offer significant opportunities for those prepared to muck in and get their hands dirty. While more people are looking for redevelopment and renovation opportunities, doing some of the work yourself can improve your chances of profiting in the short and long-term. Find an unrenovated home in a growth area, and you’ve got double the chance to increase the property’s value.
Remember to always consider the permits you’ll need in place prior to making significant improvements to a home, and factor these into your decision-making. Many would-be investors are held up at the final hurdle before a renovation or development project due to a declined building application.
Let the Sunshine In
Some older homes have floorplans that feel pokey and compartmentalized. Open-plan living is the way many of us prefer to live today, so knocking out walls and reimagining spaces could allow you to transform an average property into one with ‘wow’ factor. Think about adding a second level to create more bedrooms, transforming a dining area into a study or snug, or adding walk-in-robes or a butler’s pantry to bring the home bang up to date. Keeping on top of trends and sought-after features can certainly pay off.
Chisholm & Gamon’s talented agents are here to assist with your property purchase. If you’re considering one of our listings for potential redevelopment, feel free to reach out with any questions you might have. We’ll do our best to obtain the relevant information and offer our insights where possible.