Why should you buy property in Sydney?
Sydney is one of the world's most famous and vibrant cities, known for the iconic Opera House, stunning harbours and diverse culture. It's a city where there's always something to do, culture to enjoy and delicious international cuisine to sample.
Nearly five million people live in Sydney, according to the Australian Bureau of Statistics – proof that the city is a desirable place to live.
Despite this, some view the property market in the city as out of control. While the median value of a house in Sydney is outrageous at over $1 million, according to CoreLogic – the city is still affordable if you know where and what to buy.
Additionally, year-on-year growth may make the area a haven for investors seeking to maximise capital gains. These factors, combined with the amazing lifestyle that the region offers, means that Sydney is still one of the most attractive property markets in the country.
Growth year after year
From June 2012 to June 2015, Sydney's median house price rose by 56 per cent. The second fastest mover was Melbourne, with an increase that pales in comparison to Sydney's, at 33 per cent according to a QBE report.
From June 2012 to June 2015, Sydney's median house price rose by 56 per cent.
Understandably, investors and capital-rich house-hunters will be extremely excited at the prospect of such capital gains, and should get in quick to maximise their chances of making similar profits.
Despite the potentially lucrative market, it's of the utmost importance that you choose the right property – it's possible to pick a lemon, even in a market as hot as Sydney's.
According to the Australian Bureau of Statistics there were over 1.7 million dwellings in Sydney in 2011. Considering the massive amount of housing approvals in the area over the past five years, this figure has certainly increased since then.
With the abundance of choices available, finding the right home can be a tall task for even the most seasoned buyer. Enlist the help of a Sydney buyer's agent and you can rely on their extensive knowledge of the market to guide you through, making selecting your next investment a breeze.
Flourishing regional areas
Australia has one of the highest urban populations as a percentage of total population – almost 90 per cent, according to World Bank data. It's clear that Australians love to live in the city, and for a number of reasons. But could buying further outside the CBD be the key to smart home ownership?
Recent data from the NAB suggests that this is the case. Take Wyong council region, an area that sits just over an hour out of Sydney and boasts five suburbs in which the median property value is less than $360,000. Wyong offers a relaxed lifestyle and a relatively short commute to the big city for workers, at an extremely affordable price.
Further, capital gains may be higher in certain regional areas near Sydney. The Camden suburb of Leppington is the perfect example. This area experienced an increase in median value of over 40 per cent from 2014 to 2015 – a number that is likely to have investors flocking to the region.
Buying in a regional area may or may not be right for you depending on your budget and goals. Instead of spending months puzzling over where you should buy property, get in touch with Cohen Handler. We can help to make sure you're investing in the right property, in the right area.
Buying in a regional area may not be right for you depending on your budget, goals and lifestyle requirements.
Units may become more affordable
Apartments in Sydney may have become unobtainable for the average Australian, thanks to a median value of over $730,000. Thankfully, a QBE report suggests that this may not be the case for much longer, forecasting drops in Sydney's median unit value.
The report forecasted that from 2016 to 2017, unit values could fall by up to 2.7 per cent, and up to 3.5 per cent in the following year. This would bring apartments in Sydney back under the $700,000 mark and signals a move toward units being affordable again.
While $700,000 may still seem like a lofty price, it's important to note that half of the apartments in Sydney are valued at under this figure.
Rely on the knowledge of an experienced professional
Buying a home can be a foreboding task, requiring a considerable amount of your time. Unfortunately, it's entirely possible that you'll spend weeks and months, searching for the perfect place and still come up short. Understandably, for the majority of Australians for whom money and time are limited resources, choosing the wrong property is not an option.
Instead of shouldering the entire load alone, rely on the industry leading knowledge of one of Cohen Handler's buyer's agents. They'll put your needs first and go above and beyond to help you find the perfect Sydney property – quicker than you can say capital gains.