If you compare the increase in value of investment property in Potts Point, 2011 to the rest of Australia, it performed quite well. The median increase in value, or capital gain property investors experienced for this NSW suburb was 7.48%.
Data for the last quarter indicates that, in the short term at least, the capital value growth rate for property investors in Potts Point has increased when compared to the 5 year average annual rate.
Potts Point, 2011 is offering NSW ‘s 210th most discounted properties when looking at the average discount being offered by vendors. This puts it in the middle of discounts offered by this NSW.
Often selling an investment property can take time, and in Potts Point the average time real estate has been on the market is 37.63 days.
Using the current median advertised rental of $517.5 and the average annual increase in value of a median property of 5.82%, investors should hope to achieve an overall return of 4.04%
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