Investment property Sydney

Investment Property in Sydney

Many people will look at the real estate investment prices in Sydney and immediately write it off as less than attractive location for property investment, but you have to look at more than just the price when considering getting involved in real estate. It’s often said that you have to spend money to make money, and in the case of Sydney, that may very well be the truth. After all, the main reason for investing in property is to make money, and by opting for a residence that is in a new development, or a suburb that is in decline, is asking for trouble, no matter how appealing the prices may appear in those places.

Location and Infrastructure are key to Real Estate Investment

When purchasing an investment property, your best bet is to do so in an area that is on the rise, with a huge potential for future capital growth, In Sydney, that means going with areas like Darling Harbor and East Sydney, that are not only seeing a major boom in popularity, but which are also close to transportation, the Sydney CBD and have infrastructure in place that will make a move to the area a seamless one for any new resident. That sort of convenience simply doesn’t exist in areas that are under development, with the general feeling that it takes 10 to 15 years for a new community to catch up in regard infrastructure. That’s a long time to wait for your investment to mature, with no real solid evidence that the new area is going to take off.

Sydney is one area that does not have to worry about future growth, as the population is expected to increase by over 1 million people in the next 25 years. At the current pace, the number of new residents is outstripping new constructions, and as such it has made the rental market more than a little competitive. The plans are to improve the infrastructure in Sydney and the surrounding areas, as well as starting a tone of new home constructions, the majority of which will be added to existing and established Sydney suburbs.

It’s for the very reasons mentioned earlier that those suburbs have been chosen as the kick-off to the expansion projects, as the demand for homes in those areas is at an all-time high. People want to have a nice, comfortable home, but they also want to be close to shopping, transportation and amenities, and let’s not forget the proximity to the water and the Sydney CBD. Those are the areas where the budding real estate investor should look at putting their money, as it exactly mirrors the keys to investing success in that the capital growth is virtually ensured. A little extra money spent now could mean huge dividends in the coming years, with any monies earned pumped into further investments. In short, the current expansion to the city should be looked upon as a great way to pad your portfolio, rather than a large financial outlay.