Sydney economic boom provides investment strategy
If you're considering Australian property investment in the near future, now's the time to turn your attention to New South Wales.
According to a recent report from Deloitte, NSW is "superbly placed to cash in on the nation's next boom via the 'Fantastic Five'".
Just what are the so-called Fantastic Five? The industry sectors of agribusiness, gas, tourism, international education and wealth management.
Deloitte reported that NSW is already ahead of the country in more than half of these super-growth business sectors.
"Not only are global markets shifting, but so too is the nature of the Australian economy, and both these big drivers of future prosperity are changing in ways that play to NSW's strengths," said NSW Managing Partner of Deloitte John Meacock.
"Our analysis shows the potential for NSW to make the most of the trends transforming the nation over the next two decades. It won't be easy, but the state is in a great position to make these opportunities count."
One of the Fantastic Five sectors outlined by Deloitte - wealth management - should be of particular interest if you're looking to buy investment property in Sydney.
As Mr Meacock points out, Sydney is not only a financial hub for NSW, but for Australia as a whole. Nearly a third of jobs in the Sydney central business district are in the finance sector.
With this industry set to grow further, it makes sense for investors to focus their buying strategy in areas within reasonable proximity to the CBD. Professional finance workers are typically on higher incomes so they can afford to live and rent in sought after suburbs close to the harbour with great lifestyle appeal.
The city's eastern suburbs offer a prime location for finance workers to live away from the hustle and bustle of the city while still having quick access to it through a short commute. An early morning surf at Bondi Beach is often the mantra for some office workers before jumping on a bus for a 30 minute ride to the city.
Sydney's Inner West provides a great range of lifestyle suburbs for finance sector workers. Jogging along the harbourside parks at Drummoyne, Lilyfield or Birchgrove is a popular pastime for many workers before or after work.
Just over the bridge on the Lower North Shore, Mosman, Balmoral, Cremorne and Neutral Bay boast the highest concentration of merchant bankers and finance workers. Units in these locations attract high-quality and long staying tenants.
With many more finance professionals likely to pop up in the coming years, buying an investment property in the inner and middle ring suburbs of Sydney is a great investment strategy. A savvy buyers agent can help you source and negotiate the best properties in these areas.