Sydney has plenty to offer for the savvy property investor, and, with such a diverse range of suburbs, there’s something for everyone. But property investment in Sydney can be tricky without a well-considered investment strategy and a thorough assessment of the best properties to suit your unique situation.
Why Should You Invest in Property?
If you’re looking to get involved in property investment in Sydney, your first question should be whether property investment is right for you at all.
Put simply, property investing is great for first-time investors, unlike investing in the stock market. It is relatively easy to understand and, as long as you do your due diligence when buying, you don’t have to have an in-depth understanding of property to be able to invest.
2020 has proved to be an interesting year in the Australian property market and has opened up opportunities in various markets and property types. Interest rates are at an all-time low in Australia and house prices in some areas have also decreased, so it’s the perfect time for first-time investors to enter the market.
A Guide to Property Investment in Sydney
Sydney is a growing coastal city that boasts a thriving culture as well as plenty of harbourside and beach-side suburbs. With such a unique landscape, strong transport infrastructure and a highly desirable lifestyle, Sydney is a beautiful place to live and a valuable place to invest in, as long as you choose the right property!
Here are our top tips to help you get started with property investment in Sydney.
Decide on Your Investment Strategy
First of all, decide on what your property investment strategy will be. For some people, their strategy might simply be to buy a property and hold it for a long period of time, waiting or renting it as it appreciates over time.
They can then use the equity to buy a second property. This is a great strategy for properties in Sydney, as, chances are, most properties will increase in value over time.
You might also buy to sell and “flip” your property. Or you might buy, renovate and rent it to gain a higher rental yield than you would otherwise.
Whatever strategy you choose, ideally you should have a clear understanding of what your approach is before you decide on what you’re going to buy.
Property investing in Australia can be tricky, as suburbs and regions vary drastically in terms of availability, cost and demand.
Generally, however, you can use these rules to invest wisely in property in Sydney. Choose property that is:
- Close to transport and amenities
- In an area where demand is high and supply is low
- In an area that has a history of experiencing high capital growth
- Has water views or is close to beaches, rivers or parks
- In relatively good condition and is made using high-quality materials
- Can be easily adapted or converted or has something for everyone. For instance, a second bedroom that can be converted from a bedroom to an office is great, but if there is an in-built desk which doesn’t leave space for much else, this isn’t ideal. In the same way, a bright red kitchen isn’t for everyone, unless this can be easily renovated
Use Your Head
When you’re just getting started with property investment in Sydney, think as an investor, not as a homeowner. That means using your head, not your heart.
For instance, if your strategy involves only living in the property for a year, renovating it, then moving to rent it, try not to think of the property as your “home”. Remain detached and assess each property’s strengths as an investment only. Perhaps you need three car spaces, but most renters may prefer a larger kitchen instead.
If you’re getting into property investment in Sydney, you need to start learning about price trends and fluctuations in the specific areas you’re looking to invest in. Be aware of any changes in the area over time; for instance, upgrades to transport infrastructure or any planned developments. Be aware of changing demand in that area. Start tracking how long homes are taking to sell in certain areas and how much stock is available.
What is your investment strategy when it comes to property investment in Sydney? If you’re ready to buy, we know the Sydney market intimately and we provide a highly personalised service.
Want to learn more? Browse our other property investing blogs for more information.