13 Oct Why Now Is The Perfect Time To Invest In Sydney Property
In 2022, a quieter market means there are good opportunities for investing into property. Here’s why you need to act now to get ahead.
After several years of booming property prices, Sydney has finally lost some of its steam. This doesn’t mean there is a crisis, simply that prices have settled after record-breaking increases.
The change in pace has actually created opportunities for Sydney property investors who previously found themselves unable to find a reasonable entry point.
We believe the end of 2022 and start of 2023 are an excellent time to invest into property in Sydney. Here’s why:
Sydney’s Competitive Rental Market
SQM Research figures from August 2022 show rental vacancy rates (the number of rental properties that are not occupied by tenants) in Sydney sitting at 1.3 per cent. This represents a halving of listings in comparison to December 2021, when it was 2.6 per cent.
Low levels of availability allow property investors to set rent at a higher price point. This minimises the shortfall between the rent and the cost of the mortgage, giving you better long-term financial results.
When you buy a premier home in a suburb with strong rental yield,you will maximise your potential for capital gain and have peace of mind.
Expats And Foreign Property Investors ‘At the Door’
It took a while after the lockdowns of the pandemic for people to feel confident about travelling overseas again but expats and immigrants are slowly returning to Australian shores.
The Australian jobs market is calling out for skilled workers. Thousands are being lured by incentives to relocate or repatriate to Sydney and other parts of Australia. Inner suburbs like Mosman, Middle Harbour and Chatswood were highly searched for during 2021 and are no-doubt still on the radar of anyone who is set to relocate to Sydney or return home. Bellevue Hill, Surry Hills and Paddington are also on the radar of incoming residents, according to data from Domain.
The top ten countries where people are searching for property in Sydney include Hong Kong, the USA, China, Singapore, New Zealand and Canada. With interest from overseas rebounding and travel a possibility again, it’s all the more reason to act quickly so you can stay ahead of foreign buyers.
Investment Property Affordability Is Up
Speaking of those astronomic price jumps, Sydney is definitely taking a breather right now in terms of house prices. According to the PropTrack Home Price index, Sydney prices are down -0.87% over the last year. With this being said, this is the average and it doesn’t reflect the many postcodes within the city. There are always buying opportunities — a buyer’s agent can help you figure out where to focus your attention.
Last year, many borrowers found that by the time they had pre-approval for investment loans, prices had jumped. In 2022 and 2023 there will be more breathing room and the opportunity to find more cost-effective opportunities to invest in property.
Savvy Property Investors Are Buying Now
Property investors often fail to take advantage of a quiet market or misjudge the entry point into the market, but those who understand the value in playing a long game see why it is worth being proactive when others are passive.
Hesitation can be costly. Instead of closely following trends and headlines, it makes more sense to work on a plan that is right for you and your financial circumstances.
Where To Buy
From our experience as buyers agents, there are postcodes in Sydney which will never go out of style. These include areas that are the right distance from both the CBD and the seaside. The top suburbs usually have excellent public transport options, access to good schools and not a lot of high density new housing developments.
As buyers agents, we help couples and individuals find premier investment opportunities in and around the Lower North Shore, Eastern Suburbs and Northern Beaches.
When helping our clients identify a house or unit worth investing in, we examine:
- Capital growth potential
- Current and future rental yield
- Ease of rentability
- Building health due diligence
- Pending special levies (applicable w/ strata & company title buildings)
And importantly, we negotiate the price and details of the transaction so the final deal is in alignment with your goals.
In terms of the type of property you buy and its features, there are some specific things to look out for. Such as natural light and ventilation, privacy, lack of noise, aspect and proximity to public transportation to name a few. For more investment property tips take a look at our article on What To Look For When Buying A Sydney Investment Property.
To secure an A Grade investment property that provides long term capital gain and rents well, it makes sense to use a buyer’s agent who lives and breathes Sydney property, and can expertly identify the right opportunity.
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