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How to Build Value and Create Instant Equity

how to make instant equity when building a house

It’s true, choosing to build means having the opportunity to create instant equity. So how do we go about creating instant equity? Is it guaranteed? No, unfortunately it’s not. You can’t build just any house and expect to make money. I hear time and time again from people who built a home to put it straight on the market and either couldn’t sell it or didn’t make any money on it. In the worst-case scenarios people lost money. That’s where the false idea that it is more expensive to build comes from.

How to create equity

To create instant equity, you have to know exactly what brings value. Not just to you, but to the majority market. You have a better chance at earning instant equity if you’re able to create a home that delivers a great floorplan with excellent liveability. You should consider not only what brings value to you, but what would bring value to the majority of people.

Utilising modern building systems and processes to create liveability for a price that delivers value is the key to creating instant equity when building. It’s about being smart with your decisions, your design and your fit-out.  Your location plays a big role also.  The value of a home lies in the homes ability to provide a functional, comfortable life for its occupants.  The blueprint of a home is the most relevant consideration when considering building to create equity.  You need to ask yourself this: Will expensive fixtures and fittings add value to your lifestyle? It may add value to your sense of pride, luxury and opulence. But your actual day-to-day lifestyle? No, they won’t. We are so tempted during the planning stages to add this and that. Some things are just too hard to resist. Adding hard-to-resist luxuries will add cost to your home, but not enough value to create equity.

It’s simple to build something for less than what it would cost you to buy it if you know the rules and don’t let your emotions cloud your decision-making. It sounds deflating, but the more you use your head, rather than your heart, the more equity you’ll create.

The Building Home Masterclass was designed specifically to help families maximise their home building budget.  It shares valuable tips and insights into how you can create instant equity when building a new home.  You can unlock a wealth of information about how to get the most value out of your home building journey by taking this 5-step course here.

Building Home Masterclass Series