It’s the question asked in good and bad times – where should you buy to make the most of your investment? I promised last week that I’d reveal my best picks in Sydney and I will do my best to make it easy for you to choose a great home, whatever your budget.
There are many ways to determine the right property for you and also gain the most in terms of growth or yield, but where do you start?
Although this might sound crazy the first thing you need to do is determine how much you can truly afford and lock the interest rate in. This gives you certainty in what can be unforgiving territory. There are plenty of people who have borrowed their maximum amount and are being burned by prices which have come down from their peak. My advice is borrow only 80% of what the bank is prepared to lend you – it gives you an inbuilt margin of safety.
There will also be some weighing up to do in deciding if yield or growth is important for you. I would also choose a suburb which offers both as the home may not always be your primary residence or if it’s an investment you may want to move in at a later time. Always look for infrastructure like trains, buses, schools, road quality and hospitals. They generally lift the desirability of a suburb which can only benefit you as time goes on.
Look for things which increase ambience like the number of trees in a suburb. If a suburb looks great to you it generally will to others. If something is on a noisy freeway there are many people that will be put off so use your common sense and if in doubt ask friends and family their opinion or call someone at Marquette Turner Luxury Homes – we are always happy to offer a helping hand.
The biggest lesson in making money from property that I have learned is that you really do make your money when you buy. In other words if you overpay for the home initially you are really playing endless catch up and you stifle the full benefit of the purchase. If you remember this lesson you will choose a property to buy where prices have dropped and have plenty of upside while balancing growth and yield in making the decision.
So with that in mind here are my picks in Sydney. In the houses under $500,000 I can’t go past suburbs like Lakemba and Roselands. Substantial discounts are available, vacancy is very low and prospects for growth are good. These suburbs and their surrounds have not been hit as hard as western Sydney which I would continue to avoid, especially the land release suburbs which have not performed well.
In the housing bracket between $500,000 and $1,000,000 I just can’t go past terraces in parts of Surry Hills, Redfern and Darlington. These suburbs have plenty of great buys and Redfern and Darlington have growth upside. I like the Eastern suburbs – rental demand is high, infrastructure is good and whether you buy renovated or unrenovated properties you can win.
In the $1-$3 million range I really like Eastern Suburbs. The big choice here is between the East, The Lower North Shore and the Northern Beaches. I am very keen on Woollahra, Paddington, Waverley, Queens Park and Randwick. The suburbs close to Centennial Park are brilliant and have experienced price reductions of between 14 and 20%.
Anyone looking for their Palace over the $3 million mark has plenty of options and given that prices have decreased you will do very well in almost every Luxury harbour or beachside location. Next week I will look at the smart apartment buys in both Sydney and Melbourne.