Sydney offers a wealth of options for property investors. As Australia’s largest city, with a population over 5 million and a diversified and strong economy, Sydney presents significant opportunities for investors. As such a large and varied market, there are options for investors chasing a range of investment strategies. The entry prices for Sydney investment properties tend to be higher than in other capital cities, and yields generally tend to be lower, however, if you can address the potential cash-flow requirements, there are significant opportunities in this world-class city.
Investing in Sydney property
As a Sydney buyers agent, I help clients invest all over Sydney and surrounding areas. My approach is different to many other buyers agents. I invest heavily in data and research to help me make informed decisions, to help enable me to find properties that are set to outperform the market. However, I don’t just blindly follow a few simple metrics. I know that each property is different, some for the better, some for the worse. It’s the ability to see past the headlines and really understand the micro-markets that sets good buyers agents apart from the rest.
Considerations for Sydney property investors
The Sydney property market is an exciting, yet challenging one. It offers something for a range of investor types, from capital growth focused investors, through to those looking for slightly more cash-flow. It’s a market that has traditionally rewarded investors with impressive capital gains, for those who choose the right properties.
Regardless of your strategy, there are a few key things to get right when looking to invest in Sydney property:
- Understanding the supply and demand fundamentals at a suburb level
- Understanding the local jobs market as well as what lifestyle facilities are available
- Analysing any future planned infrastructure changes, and how they may impact the area in terms of improving access to jobs and lifestyle amenities
- Understanding the local property market, and what’s in demand
- Understanding how future demographic changes may impact the market
How to invest in property in Sydney
For prospective Sydney property investors, it’s important not to just jump into the property market. For every potential investment grade property, there are far more that are fool’s gold. However, I find that the biggest issue facing property investors in Sydney is that they commonly look to invest without a plan.
To counter this, I suggest investors follow the following process:
- Set a goal for investing
- Focus on building a team to support you
- Understand the best strategy for your particular circumstances
- Adopt a business mindset with regard to property investing
- Regardless of if you’re focusing on capital growth or cash-flow, understanding the importance of cash-flow management
