Instant Equity Fact or Fiction when building a new home, the answer is fact, yes you can achieve instant equity in a brand new investment property if done right. In fact the only time I have ever seen instant equity truely created in a property is from homes we have built ourselves following the most successful property investing system. It is still not guaranteed and is not a claim we will make when creating a property solution for you. But by following our system the chances of creating Instant Equity are very high.
It all starts with land in a good suburb and a property designed to match the street and comes in under the median house price. Next comes the suburb itself, we are looking for signs that demand will be increasing in the next 12 months to 2 years. It’s important to look into the future, not the now because if it is a busy market right this moment then you will be paying too much for the land.
I will use Victoria Point as an example because we are building 2 new homes there right now and there is a very good reason for it.
There is a shift in the suburbs people choose to relocate too in Brisbane and it’s not based on being close to the city but being close to the water. The climate here is very suitable to out door activities, especially water sports and many people are choosing to live closer to what we call the Bay, Moreton Bay to more accurate.
There are around 16 estates located inland from Victoria Point and the majority have sold out. We looked at these stats when conducting an investigation into our first property we built in the area in mid 2016. It was clearly evident that the suburb was in demand and that it would only increase and whilst there is a lot of available land inland from Victoria Point, there is very limited in the peninsular part of the suburb and that peninsular landscape creates and natural limit to to the amount of available land in the area which of course will drive up the price in the future.
The Image below shows the Peninsular part of Victoria Point. This is where we are targeting infill blocks and boutique estates.
The Map below the entire Victoria Point Region. You can clearly see the area we refer to as the peninsular, it is shaded in Green, the red shaded area is where all the other estates are located, around 16 in total and all around 100 lots of land.
As this area matures the land on the Peninsular area is going to increase in value dramatically. It’s very easy to see when you know what is happening all in the areas South of Victoria Point and you see these estates for yourself.
Understanding a region like Victoria Point and then identifying the areas within the suburb that will come under increased market pressure is how you build a home and create instant equity.