Top Tips for Buying a Good Investment Property in Sydney’s Inner West
The Sydney housing market continues to climb as renters flock to the city looking for suitable living situations. Domain reported that the median unit price in Sydney last year was $1.03 million, positioning Sydney as the most expensive city to live in in Australia. Inner west Sydney recorded the strongest annual rise in property values, up 15.4 percent in the last quarter of 2019, bringing its median house price to $1.69 million.
Sydney’s inner west continues to draw renters due to its vibrant neighbourhoods and central location. The gentrification has seen the inner west’s property market drastically shift, with record sales and a strong level of capital growth. As the city continues to grow and real estate prices climb, investors are wondering how they can get their hands on an investment property in Sydney’s inner west suburbs.
In this article by Cohen Handler, we will share our tips for buying a high-quality investment property in one of Sydney’s inner west suburbs.
Research the neighbourhoods
Sydney’s inner west consists of about 54 suburbs spanning from Glebe to Homebush and down to Tempe. Covering a large area and busting with a population of over 200,000 people, each neighbourhood is incredibly diverse. As some suburbs continue to undergo gentrification, others maintain heritage listed properties and local village shops.
Depending on which suburb you choose to purchase in, the outcome of your investment property may differ. The measure of how much rental income your investment property brings each year as a percentage of property’s market price, or rental yield will also differ depending on the suburb. For instance, the median price of a two-bedroom home in Annandale is $1.35 million but a 2-bedroom apartment unit in Abbotsford could run you almost $1 million. While Annandale and Abbotsford are both considered ‘inner west’, their property values as well as desirability differ drastically.
Consider distance to the CBD, public transport and additional features
While housing prices across the inner west often reflect the suburbs proximity to the CBD, this is something to consider when purchasing an investment property. Renters also like easy access to public transport or highways so they can scoot across Sydney with ease.
Consider what renters in the area are looking for. Newton is a diverse bohemian neighbourhood with a lively nightlife scene. Most likely renters in that area are university students or young working professionals, whereas renters in Ashfield are more likely families, due to its rich cultural heritage.
Manage your return on investment
With almost 5,000 properties readily available to rent in the inner west according to Domain’s listings, the market is incredibly competitive. Before purchasing an investment property in Sydney’s inner west, consider how to ensure you make a return on your investment. Working with a buyer’s agent can make a considerable difference on your capital growth.
Engage with Australia’s leading buyer’s advocate in Sydney, Cohen Handler for assistance in building your investment portfolio. Whether you are purchasing your first investment property or seventh, our team at Cohen Handler can help you make an informed decision. Contact our team today by calling 1300 244 768 or emailing [email protected]