How do you choose where to buy in Sydney?
November 28, 2014 / Written by Rich Harvey
By Rich Harvey, CEO, propertybuyer.com.au
If you're just getting into Sydney property investment and want to capitalise on the strong value growth the city has seen in the last year, you're making a good step. Buying property is a great way to expand your investment portfolio and build capital gains.
However, you have to do it right. Just looking for an affordable house or following the crowd into a busy property market isn't the way to get ahead in property, you have to be careful and get great advice and insider knowledge.
The good news is, you can get all of that and more with the services of a buyers agent.
Don't just follow the crowd
With so many healthy markets in Sydney at the moment, it can be tempting to just go where the success is. The trouble is, that seems to be everywhere you look now. As of August, RP Data recorded 248 suburbs in New South Wales where houses had a median value of more than $1 million. The next closest state was Victoria - at 56.
With the NSW millionaire suburbs increasing by 42 per cent over the year, however, you need more than just the news that Sydney is booming to make a strong first step onto the market. You have to take into consideration vacancy rates in different suburbs, the ups and downs of the market, even where new schools are being built, and more.
This can help paint a picture of which suburbs have already peaked in value, and which ones are on the rise. It's this latter category that you want to consider when you invest in property, and a buyers agent can be your ticket to working out which areas are heating up. Check out the free reports we have compiled for a snapshot of the kind of detailed insight you get when you use a buyers agent.
Look closer
The latest SQM Research vacancy rate release, for October, showed Sydney's vacancy rate sitting nicely at 1.6 per cent. But you have to remember that this differs suburb to suburb. While some areas like Double Bay sit around this vacancy rate based on SQM data, showing strong demand for property, others are slightly higher - like middle Sydney, where Real Estate Institute of NSW has recorded a 1.9 per cent vacancy rate in September.
This may not seem like a huge variation, but the little details are what make the difference between a strong growth investment and a property that sits idle.
We can't stress it enough - the Sydney market is thriving, yes, but you need the right advice to pick an area that suits your financial plans. Talk to a buyers agent today to discuss your property investment.
