I’d like to ask a question about property investment in NSW. I live in Sydney but would like to explore areas where there might be some significant growth opportunities in the next 5-10 years?
Hi Adam, As Sydney prices continue to rocket out of reach to most households, more and more investors are looking to growth areas such as the Central Coast. I’ve recently been speaking to some builders in that area who are inundated with demand due to the affordable prices.
Because if the money being spent on transport and infrastructure, many are making the move to live on the Central Coast for lifestyle & commute by train to work in the City - which is the same time as travelling from Sydney’s outer suburbs by car.
There are also opportunities for ‘dual key’ dual
Income properties with great rental return.
draw a great big circle around Sydney. make sure it goes all the way up to Yamba and all the way down to Merimbula.
then chuck a dart at the circle....if its not in the blue bit rip in.
chances are that there will be significant growth opportunities everywhere:)
Of you can maybe look at areas that all the smart people are saying are future growth centres......
I presume you are talking about residential property?
Also you haven't really nominated a budget, so we can cross a line through Double Bay?
I vote you write down your objectives and narrow down your search criteria before you start exploring the north coast:)
Also bear in mind you might want to consider other things that can and will influence your decision, like family and kids and work and stuff.....and factor this into your master plan.
And remember, property is great, but its not the only way to a comfortable lifestyle. Keep an open mind about how you acheive your investment goals.....
Maybe a chat with a good planner will go a long way to helping you to identify what you want.
Nice time to be poking your head up outside fo Sydney Adam,
There are some exceptional deals to be made both up and down the coast where you can still pay wholesale prices for residential property, rather than inflated retail prices in Sydney.
There has been a lot of research about areas that present good opportunities for investment and I have always found this report to be a great basis to start investigations on.
This is research commissioned by mortgage insurers, who have a large role to play in setting lending guidelines for loans about 80% of the property value, so they tend to be quite accurate about the market forces that could be at play. Of course, this is an umbrella view of the capitals in each State and last years report focussed on Wollongong and Newcastle as being exceptional growth areas.
Some exceptional advice from Brendan confirms, that for ANY investment you need to be clear about what you want to achieve from it, so you can then go in wide eyed about wether it is performing or not performing. I have found many of my clients who purchase property as their investment vehicle measure on three key things -
1. Rental yield - how much of the mortgage does the rent cover
2. Capital Growth - how much does the property improve in value over the next year.
3. Your Tax position - how would/ could this affect your tax position and is your accountant across your intentions? Do we get a tax benefit by doing this and if so how & why? (YOUR ACCOUNTANT IS CRITICAL TO THIS)
On these two metrics, it enables you to easily measure the properties against each other on easily available information. Hope that helps?
Something to consider as well is the graphic on page 12 of the QBE report that highlights the property performance - you can see they cyclical nature of the growth and plateau.
Also check out the brief about Wollongong and Newcastle on page 13.
If you like, I can introduce you to some developers in Wollongong and Newcastle who can provide you with a little more information about what they are doing, and why it may be something worth exploring a little further. Of course, being direct to the developer/ builder you can directly ASK the questions that need to be asked before you make any decisions.
After all, I believe speaking to the people on the ground is often the sure fire way to get a better understanding without the hassles of real estate agent or buyers agent getting involved.
Enjoy the research!
0481 383 490
PS - This is also a great resource tool to help you familiarise yourself with whats going on north of Sydney. http://www.planning.nsw.gov.au/~/media/Files/DPE/Plans-and-policies/central-coast-regional-plan-2036-2016-10-18.ashx