What's ahead for Sydney infrastructure?
Growth areas are a fickle thing. One minute you're being told from one corner that somewhere in the north is the hot spot you have to buy in, the next you're urged to invest in the south because it's primed for a value explosion. There's so much hearsay and speculation in the market that sometimes a buyers' agent is the only way to cut through the nonsense.
But it can't hurt to do your own research once in a while, or at least pay attention to the hard data. When you're in the market for Sydney investment property over the long term, watching infrastructure projects on the rise is one way of gauging where you can put your hard-earned money.
Keeping your commute sane
With Sydney's median price tipped by the Real Estate Institute of New South Wales to break the million dollar mark, a lot of people will be looking further out of the CBD for the right Sydney investment property. Of course, without proper transport links back into the city proper they might not be easy to get capital gains from.
Infrastructure Australia says that without appropriate measures, the time it takes to travel by road in Sydney (and many other cities) will increase a full 20 per cent by 2031. However, a doubling in the Roads to Recovery funding outlined in the federal budget could be a way forward. This gives councils a much larger pool to play with when planning and updating roads - keeping commutes bearable and putting connectivity to the fore.
Making rail a reality
Infrastructure Australia also notes that public transport demand is set to double in the next 20 years - buying investment property for the long term in areas that have good road and rail infrastructure planned is a must.
One priority project underway from the New South Wales government is the North West Rail Link. There are new stations proposed for Cherrybrook, Castle Hill, Kellyville, Bella Vista and more - it's the biggest public infrastructure undertaking since the Sydney Harbour Bridge.
I'm not saying you should absolutely buy in these areas - there's more to an Australian property investment strategy than following the fresh paint. But if you're investing for the long term, projects like this shouldn't be ignored. It shows the areas that will have improved connections to the city, and that could become new community hubs.
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