As one of Australia’s largest cities, Sydney is an attractive investment prospect for residential property investors looking to diversify and boost their portfolios. However, with economists warning that house prices could fall by up to 25% in Sydney in 2019, it’s vital that investors choose their target properties wisely.
How can investors maximise their chances of securing a high ROI if they choose to invest in Sydney, especially this year? Here’s what you need to know before committing to a Sydney-based residential investment property.
The Importance of Being Updated
Just like anywhere else, Sydney is subject to market fluctuations, regulatory changes, and population movement. The good news is that it’s possible to be prepared for these fluctuations, and property investment advisors in Australia understand precisely which locations are set to perform well, and where market demand is growing.
To secure a profitable investment in the Sydney residential property market, investors need access to the most up-to-date information on market variables and be informed regarding property investment insights.
Why Choose Sydney for an Investment Property?
Despite the projected downturn in Sydney’s house prices, there are still plenty of reasons why Sydney makes great sense for property investors in the long-term, such as the ones below.
- A recent $5 million government investment in Western Sydney is set to attract an influx of SMEs, jobs, and economic opportunities.
- Sydney accounts for almost 50% of Australia’s overall economic growth.
- New-build properties are still very much in demand.
Property investment workshops are a valuable way to learn insider tips, hints, and tricks about the advantages of investing in a major city like Sydney.
What Investors Should Know About the Sydney Property Investment
Before investors buy into the Sydney residential property market, there are a few things they should understand about the market as it stands in 2019.
Rental Rates Hold Steady
The Sydney rental market is holding steady, according to the Real Estate Institution of New South Wales. Vacancies are sitting at around 2.8%, subject to seasonal variations. This is great news for investors hoping to add Sydney-based rentals to their portfolios this year.
Interest rates set by the Reserve Bank of Australia should remain the same, at least for the first half of 2019. This is the result of the slower property market and wage stagnation. However, it means rates will stay down for property owners and investors.
There are fluctuations across Sydney and New South Wales in terms of how locales are performing. For example, Newcastle grew by 2.7% and Wollongong grew by 2.2%, which is faster than the regional average. Regional fluctuations are set to continue throughout 2019.
Ageing millennials are moving from the inner suburbs to the middle and outer areas as they look for bigger homes at better prices. Millennials more generally are looking for homes within commuting distance of major cities such as Sydney but with a better quality of life and access to amenities. Areas such as Illawarra provide the best of both worlds, and homes in these areas have the potential to be sound property investments.
Proposed Tax Reforms
Housing tax is set to be a hot topic in 2019, and proposed reforms have long-term implications for Sydney’s property market. The proposed reforms may cause house prices to fall, meaning homes will lose some of their value. It’s unclear whether these proposals will ever come into effect, which is why working with a property investment company in Australia is crucial to staying abreast of new developments.
Calla Property Can Help
At Calla Property, we aim to help you build your wealth through property. Our team of property specialists use our research methodology, Calla Property Insights, to help identify and select the property that works best for your investment goals. Whether you’re a first-time buyer or a seasoned investor, we can help you enhance your property portfolio on your way to achieving your financial dreams. Note that this is a FREE service—contact us today and fill out this form if you want to know more.
Disclaimer: No part of the information or calculations here are intended as advice. This is for general information purposes only.