Investment Properties & Apartments for Sale in Sydney

Buying investment property or apartment in Sydney could be a great strategy given a forecasted increase in population and a shortage of housing…

The ANZ Property Outlook for March 2009 estimates that the New South Wales residential housing market is in chronic under supply with underlying demand for around 41,000 dwellings and a completion rate of little more than 16,000. Could this be a great opportunity for buying investment property in Sydney?

Rental demand for apartments remains very strong despite the fact that property ownership has become more affordable for people in all walks of life due to lower interest rates and the First Home Owner Grant. However the opportunities are still there given that The Sydney Metropolitan Strategy says Sydney needs to cater for an extra 1.12 million people in the next 25 years. Sydney remains the most preferred destination for the 146,000 or so migrants taken in each year and the population is forecasted to balloon to 5.3 million by 2031, meaning 640,000 new homes will be needed.

There are many factors to consider when buying investment property, including:

• Location: suburb and proximity to transport, services & shops
• Cost: some areas where price growth has been good in recent years now have a high entry level making buying investment property restrictive and less desirable
• Capital Gains: research previous capital gains experienced by other properties in the area 
• Returns: research rental returns currently being achieved in the area
• Changes: research any planned changes to the area that will make it more or less desirable for renters

So if you are thinking about property investment in the Sydney real estate market there are many issues to consider.

Remember property investment is a long term strategy. Buying investment property in between each property "boom" during your working life without affecting your lifestyle should be your strategy. Property booms will inevitably slow down, but the factors that influence this are simply part of the property cycle.  However timing the market can be tricky so don't forget that buying the best investment property is your main focus.

So, be prepared for the hundreds of new apartments in Sydney and town houses that will sprout up in established suburbs along the train lines and bus routes in the coming 25 years. This is an opportunity for buying investment property.