When it comes to choosing the right investment property, there are many different approaches available to you, so it can be quite confusing at times. A successful property portfolio isn’t just about owning the right property within the right location at the right time, it’s also about taking advantage of creative strategies and using them to create your own success.
One new strategy to capitalise on is a Government proposal to bring about the development of more townhouses, terraces and dual occupancies in existing suburbs is called The Missing Middle. This is just one creative strategy out of many, but it is this type of opportunity that can be taken advantage of right now in the current property market. Understanding what an individual wants in a home or what makes a developer jump at the idea of this type of development, will give your portfolio the greatest chance of success and growth.
When looking to use a particular strategy for the highest amount of growth potential in your property, it is important to understand what is wanted and needed in a desirable property. Taking a closer look at the missing middle, some of the key characteristics that would make this investment desirable to a homeowner or developer would be the following:
It is Close To The Action? What’s in walking or riding distance? This is one of the first questions these buyers are asking when considering where they live. Is this property close to public transport, jobs, shopping, cafes, restaurants parks and schools?
Simple Construction. Using simple quality construction designed to take advantage of cost effective building methods. Duplicating design and construction methods means it is possible to keep construction costs down, whilst producing more affordable medium density housing for buyers.
Smaller Environmental Footprint. Medium density housing means each dwelling has a smaller footprint than a typical single family home would occupy. Developing multiple dwellings, while keeping within this footprint, enables multiple people to live with a smaller footprint while still having access to solar power, water conservation and renewables for more sustainable living.
Less Off Street Parking Spaces. The changing demographic is desiring less car ownership with the ability to be within walking distance to shops, transport and infrastructure. The reduced reliance on a family car, along with the desire of a healthier lifestyle and less impact on the environment is resulting in less space required for off-street parking.
Clever Inclusive Community Feel. Well-designed smaller units that incorporate shared communal facilities, are becoming sought after because of the increasing number of single occupiers who are looking to also be part of a community. Communal spaces can include roof top terraces, entertainment areas, outdoor theatres, BBQ areas, common gardens, swimming pools, and playgrounds.
By understanding the key factors to a particular strategy and using these to your advantage will allow your property portfolio to grow and develop. Take the time to seek and gather all information for a strategy, speak to experts and go to seminars, as by understanding a strategy well will allow you to achieve the greatest amount of success.