With so much development activity occurring in our cities, it’s definitely time to assess opportunities for your owner occupied premises. These days there are so many more choices than just ‘sell’ or ‘stay and renovate’. Outlined below are just a few.
- Zone in – check your current property zoning. If your property has been re-zoned to medium or, better still high density, consider investigating whether you can develop your property into townhouses or units.
- Join up – your property may not be large enough to accommodate a development, but by combining your property with your neighbours, you may be able to package up a development block or joint venture to develop the block yourselves.
- Split – check your local council requirements to investigate the potential for building a duplex on your block. Build to live in one duplex, then rent out the other side.
- Flat out – again, check council regulations, but if your block size is larger than 450 sqm you may find you can cost effectively add a granny flat or re-purpose an existing building which can be rented for a quality return. This is a very ‘state-specific’ option as not all states allow you to rent out the granny flat to anyone other than family members.
- Get some air – using relevant websites such as Airbnb, many home owners are making a solid regular income by renting out rooms for short periods. Think a little more broadly than just tourists as there’s a range of reasons people may use short-term accommodation.
- Conservative money tree – many home owners are using equity gained over the past few years to build their nest eggs by purchasing investment property or other income producing assets. There’s no need to sell your home to access the funds.
- Family tree – a slight variation on the money tree, you may be in a position to team up with a family member to action an investment opportunity. Caution and good professional advice is essential.
- Fresh face – check your suburb sales stats to identify if you’re in a state of renovation price disparity. This is where adding a room or extra bathroom will generate great results. Renovate and you are likely to experience a double whammy – roomier environment plus an equity uplift. Once again, research is the key to success.
- Sell but stay – this approach really puts renovators into overdrive. You’ll need to get your timing right, but a great way to build equity is to renovate your home, sell and still buy local. Just remember to include stamp duty issues into your costs.
- Sell and play – no one can predict what will happen with the market, but if your suburb is undergoing significant infrastructure changes, you may find right now is a good time to capitalise on price increases to boost your super and purchase that local apartment or house on the coast.
Buy smarter = limitless ways to build lifetime income
Crave Property Advisory is a unique property strategy and buyers agent service. As the only independent and unbiased advisory that can help you use any property strategy Australia-wide, Crave’s services extend to home, investment and commercial property. A highly client focused organization, Crave developed the Modular Investing System (MI System) to provide clients with the ability to use a tailored mix of strategies and efficiently build profitable portfolios that create lifetime income.
Debra Beck-Mewing is the CEO of Crave Property Advisory, and has more than 20 years’ experience in property investing, Australia-wide. She has used a range of strategies to build her property portfolio including renovating, granny flats, sub-division and development. Debra is skilled in identifying development opportunities, and sourcing properties that have multiple uses and multiple exit strategies. She is a Qualified Property Investment Advisor, licensed real estate agent and also holds a Bachelor of Commerce and Master of Business.
Disclaimer – This information is of a general nature only and does not constitute professional advice. We strongly recommend you seek your own professional advice in relation to your particular circumstances.