Expert Advice by Rich Harvey
As we know, the conditions for buying investment property in Sydney are still good. Interest rates are at record lows, and prices keep on rising - ideal conditions for something like an interest-only loan. But having great playing conditions is one thing - knowing how to win the game is another. Different suburbs rise and fall at different times and rates, so you need to be on your toes and get expert advice if you want to make the most of the market.
But where in particular is currently looking good? Zoning in on one area with your buyers' agent can get the process of buying a property completed much quicker than having no focus at all.
We've already seen some fantastic gains throughout Blacktown, out in the western suburbs. The Blacktown-Mt Druitt Hospital redevelopment is in full swing, which is going to provide a vital infrastructure hub for the area - one sign of a growth hotspot.
And on top of this, it's affordable. My RP Data statistics show that in the last 12 months, 401 units have sold at a median price of $342,000 - with an average of only 38 days on the market. Meanwhile, 522 homes sold with a median price of $465,000.
Commonwealth Bank has noted that rapid price growth has been seen here too - all in all, ripe conditions for making a Sydney property investment. Of course, picking the right suburb usually isn't enough - you need the know-how of a buyers' agent to access off-market gems, as well as a firm hand at the negotiating table.
If you take a look at the Domain Group's heat maps for capital growth in houses, you'll see that Leumeah is another suburb that has been rocketing up. In fact, it and every surrounding suburb has experienced more than 6 per cent growth for houses. This shouldn't surprise anyone - Sydney is off the charts at the moment.
But looking again at affordability, there are great purchases to be made here. The lowest price paid in the last 12 months in Leumeah was $220,000, while the highest price paid was $660,000 - still well below Sydney's median price.
While this looks fantastic on paper, you still need to find a property that will suit your financial situation. Will positively geared property work best for your home loan repayments, or are the tax breaks with negative gearing up your alley? Discuss all this and more with your trusted buyers' agent before you take the plunge in these types of suburbs - you don't want to end up with a dud.
Managing Director, propertybuyer
This article was written by Rich Harvey, founder and Managing Director of propertybuyer, Sydney & Australia’s most awarded Buyers Agents. Propertybuyer helps property investors and home buyers search and negotiate the right property at the right price, everytime. For further details please visit www.propertybuyer.com.au or call +61 2 9975 3311 or 1300 655 615.
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Disclaimer: while due care is taken, the viewpoints expressed by contributors do not necessarily reflect the opinions of Your Investment Property.