Want a niche in the market? Here’s one

The key to building a successful career in property is finding your niche.

There are dozens of different strategies when it comes to property, and they all work.

(Except for buying negatively geared rubbish and hoping for the best. That strategy is a dud.)

Maybe your angle is subdivisions. Maybe its granny flats. Maybe its renos. Maybe its boarding houses.

Whatever tickles your fancy, you’re probably going to be better off finding what works for you, and mastering it.

I don’t really know anyone in the game who doesn’t have their preferred play. Sure, they might dabble in different strategies now and then. And it certainly pays to have a few more arrows in your tool kit if the economics of a deal changes and you have to pivot in a different direction.

But I don’t really know anyone who is a jack of all trades – who just goes with whatever strategy takes their fancy in the moment.

And the reason for that is obvious. The more time you spend working with a particular strategy, the better you get at it. The faster it becomes to pull the deal together, the quicker you are at recognising and opportunity when it comes, and the better able you are to avoid costly mistakes and extract maximum return from the project.

And so you also want to be careful about the niche you go into. Take renos for example. This is a reasonably crowded space – how many nations do you think have three top ranking TV shows about renovations? Only in Australia folks.

So you need to go in with eyes wide open. There’s a knack to renovating for profit, and it’s very easy for a renovation to blow out the budget. You also need to be aware that there’s a lot of people working in that space. Effectively, they’re your competition. You have to back yourself to be able to find better deals than them, and execute them better.

That’s all definitely possible. But you need to be conscious of the space you’re working in.

The only other point I would make here is that niches are opening up all the time. Take tiny homes for example. That space literally didn’t exist ten years ago. Now I know a guy who makes a full time living off building the things.

Want a niche that just opened up this week?

What about this one. This week, I read about ‘slab heave’ in poorly built houses:

“Australia’s love for cheap and quick to build “cookie cutter” homes is wreaking havoc for homeowners and the environment alike, according to building and design experts.

ArchiCentre Australia director Peter Georgiev has slammed developers and builders for the explosion of sub-par, one-size-fits-all homes that are based on “star gazing, fantasy and over-servicing” rather than tailoring to needs.

“There are display villages galore and the same product is trodden out street after street. The homes are quite repetitive” Mr Georgiev said…

…One of the main structural problems he has come across repeatedly in the past two decades is “slab heave” which causes a house to twist and crack in the walls, doors and windows when “waffle pod slabs” are placed on inadequately compacted soil…”

Bugger.

So what’s the opportunity? Well, what he’s saying about cookie cutter homes is right. Most new stock isn’t particularly original.

That means original will equal rare. Rare can equal valuable and that can mean profitable.

You’ll need to do it well, and find a way to deliver original content that people want, and in a way that give you enough margin to work with. But it has to be possible.

My tip: expect to see more niche construction projects in the near future.

And what about slab heave?

I have no idea how you fix that. Doesn’t sound easy. But if you’re early with a solution, there may be an opportunity to buy affected properties from distressed buyers for a discount, fix them up, and flip them on.

I don’t know exactly what that looks like, but I do know that in every crisis there is an opportunity.

Anyway, my only point is, if you want to get into property, know that you need to find your niche…

… and there are new niches on offer every day.

Spiro Kladis
Managing Director, Cashflow Capital

Facebook Comments:

Leave A Reply (1 comment so far)


  1. carolyn
    5 months ago

    Finding a niche in the market is something that many dream of but only a few accomplish. A well written article

2 hour Investor workshops:

Newcastle
Rydges Newcastle
Mon, 27th August 2018
6.30PM-09.00PM

Parramatta
Novotel Parramatta
Tue, 28th August 2018
06.30PM-09.00PM

Sydney
Mercure Sydney
Wed, 29th August 2018
6.30PM-09.00PM

Melbourne
Pullman Melbourne Albert Park
Thu, 30th August 2018
6.30PM-9.00PM

Glen Waverley
Ibis Glen Waverley
Fri, 31st August
6.30PM-09.00PM