Potts Point, 2011’s gross rental yield is 1.20%
Property investors who have had real estate in Potts Point, 2011 should be relatively pleased with this NSW suburb’s performance compared to the rest of the country. Over the last year it has seen median house prices increase in value by 10.23%
While Potts Point,2011 ranked number 46th in NSW for increase in median house value (annualised) increase, it is ranked 206th over the last 5 years.
When looking to buy, or assessing what properties are really achieving at sale, it's essential for property investors to take into account what discounts are being offered in Potts Point, 2011. Typically our figures indicate that -3.42% is being offered, which puts this NSW suburb at 1233th most discounted overall in Australia.
Often selling an investment property can take time, and in Potts Point the average time real estate has been on the market is 37.1 days.
A $515 per week rent on the median house gives suburb investors a gross yield of circa 4.21%, without taking into account capital value appreciation, which has been averaging out at 5.29%.
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