Property Investment Strategies to Maximise Long-Term Gains

By Rich Harvey, CEO & Founder, propertybuyer.com.au

There are all types of property buyers out there with varied approaches to acquiring a  home or investment. For example, there are the set-and-forget purchasers who like to secure their assets and let them enjoy sustainable, dependable long-term gains. Then there are those with an appetite for risk and the promise of higher returns in a short time frame.

But then there are also those who try to find a balance of both. Smart buyers who secure property not just with great fundamentals for long-term gains, but that also a little something extra. They're buyers who look outside the box and identify elements that will help magnify the upside potential of their asset.

Here's a closer look at some key strategies that expert buyers' agents utilise to help buyers amplify their real estate upside.

Town planning boost

Keep your eye out for assets where a change in town planning can create a surge in value gains. They can really magnify your capital growth.

For example,  Sydney recently introduced state environmental planning policies designed to increase density near key transport hubs and town centres. Properties positioned within 400 to 800 metres of train stations or significant town centres are in line for a zoning uplift that can result in higher density development.

In fact, there are 37 suburbs across Sydney identified under the new Low and Mid-Rise (LMR) housing code, where properties currently zoned as R2 residential are now earmarked for potential higher-density development. Buying into these areas early, even before zoning changes take effect, can position you to benefit substantially when the changes eventually come through.

The same can be seen in other capital cities too. In Brisbane, for example, the standard minimum lot size in the Low Density Residential designation is 400 square metres. However, if the property is within 200 metres distance of certain services or hubs, that minimum can be reduced to 300 square metres. Find the right sized splitter block and your small project’s returns will be greatly increased.

One caveat here is that buyers must understanding that zoning changes and any resultant price uplifts doesn’t happen quickly. Rezoning processes can be notoriously slow, often taking several years or more. Yet, this slow-moving 'gravy train' is where patient investors often achieve their biggest gains.

Having personally experienced the rezoning process, I've seen firsthand how land acquired at current market value, anticipating a townhouse redevelopment down the track, might initially appear marginal. However, once zoning changes finally arrive, the returns can significantly outperform the wider market.

Amalgamation power

Another approach is to target small blocks of land that have amalgamation potential with adjoining properties to create higher uses such as unit or townhouse development. There

were recent news reports of groups of neighbours combining to sell their allotments as a collective and pocketing a handsome premium from their developer buyer.

Why does this work? Well, amalgamated blocks may have additional yield/higher density uses under local town plans. Also, removing internal setbacks can dramatically increase the net developable area which boosts development margins.

For buyers, the key is choosing a home with the strategic foresight of future amalgamation potential, knowing that their patience could deliver significant financial rewards in the future.

Units and underlying land value

Older unit blocks in particular are often positioned on valuable, good-sized allotments in high-density, blue-chip locations. These old complexes probably represented the most comprehensive density for that site in decades past, but things may have changed in more recent times.

Some of these parcels are now primed for a major redevelopment, so owning a unit in the complex entitles you to enjoy the upside of that land value lift.

Consider North Sydney, for example. Recently, a two-bedroom apartment in an older block of 30 units was sold for around $1.4 million, directly next door to a substantial redevelopment area planned for significantly higher densities. This could be a prime target for cashed up developers in the future.

Gentrification Drivers

Smart buyers keep an eye on what's being developed in their areas of interest too. Selecting a suburb where there are plans for new community facilities, such as schools, hospitals, retail, and recreation, assists in generating long-term upside. Better yet if you find homes within walking distance of these facilities.

Suburbs previously considered sleepy often become vibrant hubs following significant investment in community facilities. Keep an eye on local council planning, government announcements, hospital expansions, and shopping precinct developments to stay abreast of the possibilities.

Infrastructure Influences

Infrastructure improvements are powerful catalysts for future property growth. Major road projects, new metro train lines, transport interchanges, or substantial upgrades to local infrastructure can rapidly boost suburb appeal, significantly increasing demand and property values.

Sydney Metro is a prime example of this, where new stations and rail connections have propelled prices upward in previously undervalued suburbs. Buyers who identify these infrastructure changes early and position themselves accordingly can reap substantial financial rewards.

Of course, to be able to identify these types of opportunities you must be continuously monitoring what's happening in the property market. You must also be skilled at not just

spotting potential, but also analysing exactly how local markets and specific properties might benefit.

Experienced, independent buyers' agents like our team at Propertybuyer work daily in their service areas and can draw on their deep market knowledge, comprehensive research, and strategic networks to identify these opportunities early for clients. Our aim is to ensure purchasers buy property strategically so they can maximise their long-term gains.

If you're looking to position yourself ahead of an evolving property market, contact our team at Propertybuyer. We'll help you spot and secure the hidden prospects that others overlook, turning today's tactical purchases into tomorrow's exceptional returns.

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