Where we’re buying investment property in Sydney
Property prices in Sydney have risen almost 20% over the 12 months in Sydney so it’s getting harder and harder to purchase good investment property at a reasonable price.
The other issue is that prices of property have been rising faster than rents have and thus rental yields have been falling for investors. 1-2 years ago it was quite common to achieve 5-5.5% gross rental yields from Sydney investment property however now it’s floating more around 4.5%.
Broadly, the Eastern Suburbs looks expensive, the Inner West looks expensive, the Lower North Shore looks expensive so where do we go?
Recently, we have helped clients purchase property in Sydney, but have looked for value in areas on the fringe of the Inner West such as Dulwich Hill and Hurlstone Park. Looking South, we’ve purchased property for clients around Rockdale and Bexley. In the lower price brackets, we’ve found property in suburbs accessible within 30 minutes by train to the city such as Campsie and Belmore.
We’ve noticed that we’re also buying more property in off market transactions or prior to auction to secure quality property at good prices. Auction results over the past 12 months have been good for sellers however we’ve tended to avoid auctions as it has been hard to get good buys in this arena.
Some of our clients with existing investment property are now starting to experience land tax issues as the value of their land on investment property has risen over the past 12 months. We’re now also hunting interstate for property and focusing on CBD property in Brisbane which only experienced growth of ~6% over the past 12 months but looks ripe for further gains.
But as always, the key is to have a plan and approach and be disciplined about investing into property. Whether you want to purchase just one investment property or buy one investment property per year, get in touch with us to have a chat to us about how property investment can fit into your wealth accumulation plans.