When the market is running hot, as it is at present, it can be difficult to find and purchase bargains or even properties that you can add value to.
Not impossible, just difficult.
As a property investor you should consider the reward for effort that you are likely to get through any of your actions. As opposed to times when the property market is cooler, it is likely that you are going to have to find, analyse and make offers on twice as many properties in today’s market to find the property that meets your requirements. It may be a better use of your time to look at any existing investment properties you have and establish if you are getting all the value you can from them. It may be that your property has do-up or even sub-division potential.
If you can increase the value of the property more than the cost of the project then you are increasing your equity position. This increases your wealth and makes it easier to borrow more money for further purchases.
Alternatively you may be able to increase the rental return of your existing properties. Perhaps you can turn a living area into a bedroom, add an extra bedroom or install a sleep-out. If you have property in a student area, perhaps you could add white-ware for a higher rental price or install phone lines into all bedrooms for email access. If your tenants are already hiring items from a hire-company, perhaps you could actually lower their fees while still providing yourself with an extra income stream.
By applying your time and efforts into maximising your existing opportunities, you may be able to get a better return for your input and place yourself in a better position to be able to buy further property when the opportunity presents itself.
