Property Investment Sydney
New apartments, home and house buyers’ information and property investment guide...
We’ve all heard the saying ‘as safe as houses’ and you can’t go wrong with
buying ‘bricks and mortar’. Purchasing an investment property is a sound investment that builds wealth creation without the high risk of buying shares or stocks that may plummet overnight.
Dabbling on the stock exchange may potentially give you high returns but puts you at risk in a volatile market. Buying an investment property is a long term investment strategy that will bring a stable return and peace of mind.
Here are five reasons why you should buy an investment property and get a piece of ‘the great Australian dream’ that will still allow you to sleep at night.
Capital growth
Capital growth is the increase in the value of your property over time and is one of the main reasons why people invest in real estate. Your best chance of achieving capital growth is buying the right property, in the right place, and most importantly at the right price to maximise your returns.
Rental income and yield
Ensure high demand for your property by
buying an investment property where the location is tenant friendly and close to amenities such as cafes, public transport and shops.
Taxation benefits
You may be able to claim a number of expenses related to the investment as deductions and depreciation. Any legitimate expense incurred in running your investment property should also be tax deductible. Depreciation schedules where possible are provided for each of our investment properties
Affordability of property investments
You do not need to be very wealthy to get into property investment. And that’s because many of the banks will lend up to 100% of the value of a residential property. As long as you have a steady job, regular income and good credit rating, you can afford to buy an investment property.
Greater degree of control
While the performance of any investment is not guaranteed,
buying an investment property may provide you greater control than other assets. There is a lower return in purchasing property but potential high returns are forsaken for less risk and a stable return from property with a long term investment strategy.
Understanding the Sydney property investment market
Sydney is Australia’s largest city with a population of over 4 million and the financial hub of Australia. The growing population rate, low vacancy rates, demand for rental property and continued commitment to improving infrastructure and public transport makes Sydney a great location to buy an investment property and enjoy long term gains.
Demand for residential property in Sydney is high due to restricted supply and strong population growth. Vacancy rates continue to be at historic lows, resulting in higher gross rental yields.
According to the Sydney Metropolitan Strategy, Sydney needs to cater for a projected extra 1.1 million people in the next 25 years due to a projected rise in immigration and fertility rates. This means that more apartment blocks and houses need to be built to supply demand, making Sydney a very attractive place to invest in property.
Factors to consider when buying an investment property in Sydney
There are many factors to consider when buying an investment property in Sydney including:
- Location: Find suburbs that are in close proximity to public transport, schools, shops and easy access to major highways.
- Cost: Offset a prime location with affordability. Some areas of Sydney where price growth has been good in recent years now have a high entry point making buying investment property restrictive and less desirable.
- Capital gains: Research previous capital gains experienced by other properties in the area and the number of existing apartments or homes in the area which may affect the capital gains potential.
- Returns: Analyse rental returns currently being achieved in the area and the vacancy rate.
- Changes: Investigate any planned changes to the area that will make it more or less desirable for renters such as improvements to public transport, the development of a major highway or an upgrade to the shopping precinct or major town centre.
Hotspots - Property Investment Sydney
Find Investment Property take the guesswork out of finding hotspots in Sydney. The regions in Sydney include:
Following is a list of the Sydney locations that will outperform in 2009:
Useful resources for buying an investment property in Sydney
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Capital gains tax - Australian Tax Office – www.ato.gov.au
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Conveyancers - Australian Institute of Conveyancers (NSW Division) - www.aicnsw.com.au
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Rental reports – NSW Housing - www.housing.nsw.gov.au
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Planning reports – Planning NSW - www.planning.nsw.gov.au
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Property managers – Real Estate Institute of NSW - www.reinsw.com.au
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Stamp Duty - Office of State Revenue - www.osr.nsw.gov.au
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Tenant disputes - Consumer, Trader & Tenancy Tribunal - www.fairtrading.nsw.gov.au/cttt.html
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