Investment Tips For Small Space Properties

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.

Small Space Properties
Small Space Properties

Use a Borrowing Power Calculator

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.

Choose the Right Location

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.

Plan Your Finances

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.

Consider Adding Value

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 Low

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.

Are you a first homebuyer looking for

Help?

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.

Enquire today!

Crunch
your numbers

Use our online calculators to work out how much you can borrow, loan repayments, stamp duty and lots more.

View calculators

With 40+ lenders to choose from, the options are never ending!

A word from our satisfied customers

Maxine Zhong
Maxine Zhong
19 October 2023
Amanda has been such an incredible support throughout our very first time going through the home loan process. Her thoughtfulness to regularly check in to make sure all our questions were answered and that all our documents were in place helped to make the whole daunting process feel seamless and easy. I could not recommend her enough - she made sure to keep us informed every step of the way and made sure all necessary documents/processes were completed well ahead of time so we never had to worry about missing any steps. She went well above and beyond her role, and I know we will definitely be coming back to her in the future, as well as recommending her to all of our networks! Thank you again, Amanda!
Mark Nesbitt
Mark Nesbitt
11 October 2023
Greg and the team provide an outstanding service. Highly recommended
Christine Tran
Christine Tran
23 September 2023
Yuval handled my first ever home loan, he did such an amazing job I asked to him to refinance for me 2 years later. Yuval made everything very easy for me, and will give his best recommendation as if it was his own. Would always recommend Yuval :)
David Petrini
David Petrini
25 August 2023
Yuval Bloomfield was an absolute delight to work with. He made it extremely easy for my clients to discuss about their financial situation. With Yuval's strong connections he was able to get the loan my clients wanted in very quick time. Will definitely refer Yuval again.
Sophie Linehan
Sophie Linehan
24 August 2023
Greg and the team at 1st Street were fantastic all the way through the process of getting our financing sorted and buying a new home. They not only secured us the most competitive mortgage in the market but they also gave advice on a number of mortgage-adjacent questions that came up along the way. Their responsive and thoughtful guidance helped make the nail-biting process clear and calm. We would definitely recommend their services.
Gabrielle Scott-Jones
Gabrielle Scott-Jones
18 August 2023
Greg and his team gave me exceptional advice and support. They were timely and detailed in their responses and dealt patiently with me as a first home buyer and all of my questions. The lender at the bank commented on how well I was being looked after compared with other brokers in the market. I’d highly recommend 1st Street to anyone, including friends and family.
Eli Simic
Eli Simic
15 August 2023
Great communication and fast service
Richard Kuipers
Richard Kuipers
11 August 2023
Jeremy and his team are superb. Negotiated the best deal for us and were an absolure pleasure to work with. Highly recommended, you can't do any better in my opinion.
Jordan Rivkin
Jordan Rivkin
1 August 2023
The team at 1st Street truly are professionals. I can't recommend Jeremy highly enough, he is extremely competent and just a great guy. You're in safe hands with 1st Street!
Yossi Bengida
Yossi Bengida
23 July 2023
Another amazing job by David and Bree. Always available for our questions, helpful and just 10/10 Seriously good work !! See you on the next one :) Yossi and liz