Giving property investors a a stable capital gain of 9.00% for the last year, Potts Point, 2011 is the 444th highest performer in Australia in this respect.
When looking at the potential capital gains offered to property investors over the last 3 years, Potts Point comes in at number 447th in NSW.
State is the 7th most discounted Australian state or territory in this month’s figures with an average Vendor Discount of -4.41% offered to property buyers. Sellers in Potts Point itself are offering an average vendor discount of -3.93% to real estate investors.
In the last year 239 properties changed hands in Potts Point, which puts it as the 41th most active market in NSW when comparing the number of sales per suburb.
A $520 per week rent on the median house gives suburb investors a gross yield of circa 4.13%, without taking into account capital value appreciation, which has been averaging out at 5.82%.
Potts Point’s main attraction is its affordability. Units here are a steal compared to its neighbours such as Rushcutters Bay, Elizabeth Bay or Woolloomooloo.Full summary
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Potts Point’s main attraction is its affordability. Units here are a steal compared to its neighbours such as Rushcutters Bay, Elizabeth Bay or Woolloomooloo.
While Potts Point is only about 2km from the Sydney CBD, being in close proximity to Kings Cross – which is dominated by bars, adult shops and night clubs – has made the suburb less desirable than its more affluent and family-friendly neighbours such as Rushcutters Bay or Elizabeth Bay.
“Potts Point is an excellent area for investment,” says www.propertybuyer.com.au CEO Rich Harvey. “It’s adjacent to Kings Cross, so it comes across as seedy, but it has changed its character and its reputation is improving. Properties here are very tightly held. They’ve consistently attracted high demand so, if you can afford it, it’s a good area to invest in.”
Residents of Potts Point enjoy excellent amenities, from retail to entertainment and transport, being so close to the Sydney CBD. The suburb has the Kings Cross train station as well as multiple bus services. Being right next to the CBD also means many residents can simply walk to their workplace.
More than two thirds (62%) of Potts Points residents are renters, which helps to explain the consistently strong rental yields being achieved in the suburb. Residents are also quite affluent, earning $2,603 per week on average – compared to $1,367 across NSW – according to SQM Research. This combination of high incomes and relatively affordable property prices contributes to property owners only having to spend an average of 20% of their monthly income on repaying their mortgages. Population growth has been steadily rising by 1%pa over recent years.
Best streets: Macleay and Darlinghurst St
Where to avoid: Properties located near the bars and nightclubs along Kings Cross