Investing in a small space property can be an affordable way to get your foot on the property ladder. It can also help you diversify your existing property portfolio. In saying this, not all small property investments are created equal. To maximise your return on investment (ROI), your approach must be strategic.
Discover the investment tips that can help you get the best bang for your buck when it comes to small space properties.
Before you even start looking for a small space property, it’s important to know what your borrowing power is. This will give you a clear budget and help you avoid overcommitting to a property that you can’t afford. Find out how much you could borrow based on your income, expenses, and other financial factors by using our Borrowing Power Calculator.
The location of your small space property can greatly impact its ROI. Look for properties in high-demand areas with good transport links, amenities, and schools. Properties that are located close to public transport and major employment centres are usually in high demand, which can lead to higher rental yields and capital growth.
When it comes to any investment opportunity, it’s essential to have a solid financial plan in place. Make sure you fully understand both your financial goals and the risks involved in property investment before you make any offers. It’s always a good idea to work with a mortgage broker who can help you develop a long-term investment strategy that aligns with your goals.
Small space properties may not have the same potential for capital growth as larger properties, but you can still increase their value through renovations and upgrades. Consider adding features that will appeal to potential renters or buyers, such as air conditioning, additional storage, or modern appliances.
Keep your expenses as low as possible to maximise your ROI. Look for properties with low strata fees and maintenance costs. Consider managing the property yourself or using a property management service that offers competitive rates.
Investing in a small space property can be a smart financial decision if you approach it strategically. By using a borrowing power calculator, choosing the right location, planning your finances, adding value, and keeping your expenses low, you can get a good ROI on your investment.
Need help? Speak to one of our award winning mortgage brokers to help you develop an investment strategy that aligns with your property goals.
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We can help get you into your new home.
We’ve worked with clients across Australia to access the different first home owner grants (FHOG) as well as the various stamp duty and other concessions that may be available depending on which state you are in. We can talk you through your various options as well as helping you compare things like buying vacant land vs. an established home.
Use our online calculators to work out how much you can borrow, loan repayments, stamp duty and lots more.
