Investing In The Sydney Property Market
If you solely relied on statistics you would never buy into the Sydney property market. We see auction clearance rates stated for the entire city and the newspapers report Sydney wide prices as one entity. Boom or Bust, 50% decrease in Sydney property prices and so on…However if you discard Sydney because you are looking at it in a macro light rather than micro light you are missing the point and potentially a great real estate investment too!
Working in the frontline and predominantly in the 10km radius of the CBD I see a different story. When I work with an investment search I am not always suburb specific. It is important to cast an eye over key suburbs with key benefits as I trawl for a fantastic investment for my clients. I am forever attending auctions and looking for slight changes in suburbs to pick up on the nuances of the market. A couple of years ago when Darlington became the flavour of the month Glebe was lagging behind so I picked up a great terrace for a client under the million with this tactic.
Last year a repeat client came back to us as he had some spare cash and wanted to get a better return than the banks were giving. Taking on a full search I recommended that we look for either a stock standard property in a banging location in the East such as Elizabeth Bay or a warehouse apartment in a grungy up and coming area in the Inner West.
I had already bought a cracking house for this client a few years ago in Enmore, before it popped and my client was enjoying the delights of that particular purchase with an increasing return and mammoth capital growth.
The first property that was a potential was an oversized one-bedder in Darlington by oversized I mean 82 sqm – if we could get approval it could be easily made into 2 bedroom. Since the panic and boom has hit area’s like Darlington that were under the median house price back in 2012 have now well and truly popped at the median house price at $1,396,000.
Once I started the due diligence process I discovered that one of the other units had tried to put another bedroom in and the other residents were not happy. There was sufficient history in this building to see that perhaps the plans I had for this property were not going to work or maybe be a bit more of a headache than my client wanted to take on. He is a set and forget investor so we quickly moved on.
I spotted another Warehouse apartment that had been sitting on the market for sometime – it surprised me that it had not sold. I read through the strata report with a fine toothcomb. Sometimes strata reports can be a lot to get your head around I have seen loads in my time.
This apartment has nice high ceilings, 102sqm of floor space, two bathrooms and parking. There is a lovely vista across the next suburb of Annandale as it is perched on the 4th floor. After a series of negotiations I managed to get our contract signed with a 66W and cheque and I handed it over to the agent within 24hours. I bought it for $890,000 in March of last year.
Just a year later one had just sold in the building on the lower level for $1,075,000! which is a record for the building. So it’s all about keeping an eye on certain suburbs and looking for opportunistic buying. Interested to hire a Sydney buyers agent? Send me an email and let’s discuss.