Where is Sydney booming right now?
Deciding to invest in property is a big step to take, but the rewards you could reap from that are astronomical. You'll be wanting to get the most out of whatever you purchase, right? So searching around for the best properties that will provide great capital gains is a fantastic starting point.
Look at the area in particular, because it's more important to own the worst house on the best street than the other way around. After all, a home can be improved relatively easily, but a whole street takes a lot more work.
If you're researching in Sydney then these suburbs should be at the top of your list:
This suburb is great for buyers who are looking for high demand in rentals. Close to Sydney University and the hotspot area of Newtown, Tempe is a great option for investment.
Paying only slightly more than the city median for an investment is a great prospect.
Residex lists the median house price in the suburb at $1,047,000, and the median unit price much lower at $641,000. The BIS Shrapnel Australian Housing Outlook 2015-18 states that the median house price all over Sydney is $1,034,100. For Tempe, an area that is in high demand according to Smart Property Investment, paying only slightly more than the city median for an investment is a great prospect.
What's more, that median house price is expected to continue rising, with a 7 per cent increase forecasted before June 2016, placing the median of Sydney properties at $1,110,000. Capital gains are extremely likely in the city, and purchasing a property with the advice of a buyer's agent from Sydney will set you on a successful path towards success in the investment arena.
If you'd prefer to buy close to the beach, then Kingsford is for you. We recently went over the ways a beach property can be of great benefit to any property portfolio, but also close to a tertiary education provider – the University of New South Wales. The new light-rail network development means the suburb is in high demand from renters as well.
The median house price for Kingsford is $1,819,000 as researched by Residex, and units come in at $764,000. Houses are significantly more pricey than in Tempe, but, relatively, units are not. For buyers after a more prestigious postcode then this could be the one you've been looking for. Neighbours include Coogee and Randwick, both of which are sought after addresses.
Lying west of Sydney, there are large developments planned in the area surrounding this suburb, which include the $2 billion Parramatta Square renewal. Parramatta offers the most affordable units on this list, with Residex posting the median price at $566,000, while houses sit well above at $1,197,000. Units remain low and Smart Property Investment reports rental demand is high, it would be shrewd to pick up a bargain sooner rather than later.
Parramatta offers great buying at both ends of the affordability spectrum as well. Cowper Street has the highest median house price for a street, $3,819,930. It's important to remember that half of the properties on the street still lie below this figure, and, again, buying the worst house on the best street is a solid strategy.
At the other end of the spectrum, Good Street has a median house value of just $902,868, which could be a great entry into the western Sydney market for an owner-occupier. It is important to remember that if you're not buying for investment purposes then your requirements will be different, and affordability could be key.
To discuss some more examples of changing requirements, talk to the team at Cohen Handler and see what a specialist property agent can offer you.