Sydney. Some of you may think the harbour city is home to a property market that perpetually increases in value. I don’t blame you if you do; since 2013, Sydney has surpassed the expectations of most commentators and economists. For those now waiting for an impending collapse, I have some (bad) news for you; in the last 46 years, year on year house price growth in Sydney has declined only four times. That’s once every 11.5 years. There won’t likely be any ‘bargains’ in the near term. Instead, stagnant price growth and rising incomes will slowly swing the pendulum back in favour of buyers in the next few years.
Luckily for property investors, Sydney makes up only 20% of available property in Australia – although it attracts 95% of the commentary! At present, there are more attractive areas to allocate your capital than a market that for all intensive purposes has hit its peak. Buying in Sydney now is equivalent to buying that item you’ve had your eye on for a while when you know it’ll likely be a sale tomorrow. Sound advice to young Australians? Get your money working for you by investing in a market not yet at its peak and rent where you want to live. Not only will you enjoy a better lifestyle now, but you’ll also increase the probability of near-term capital gain. So what markets present the best near and medium term opportunity?
Melbourne’s recent property market growth largely neglected the north and west – a trend that is now reversing with affordability and infrastructure drawing record population growth. Read more here.
Interstate migration is approaching pre-GFC levels while Queensland created more jobs than any other state in 2017. Read more here.
- The Central Coast and Newcastle
The premium of a home in Sydney to one in the Central Coast or Newcastle is 25% higher than the long-term average. This suggests continued short-term potential for these markets.
As we transition to more of a buyers market, our ability to negotiate with developers and builders on your behalf is amplified. That means you can walk away with a better deal today than you likely would’ve 12 months ago. Now isn’t a time to bide your time; it’s a time to educate yourself, establish a support network and act.
What Do You Need To Know
When it comes to property investment, there’s more information to navigate now than there ever has been. Countless apps, endless research, numerous stakeholders and multiple property advisory firms that claim to do the same thing.
How can property investors cut through the clutter and focus on the information they really need to know?