Western Sydney – The Way In To A Solid Investment


 

A client recently said to me, Sydney’s property growth is the highest among all the major metro cities. My investments here are performing far better than properties in other cities, considering all short and long term trends. If I was going to invest further in Sydney for the long term, with say less than $750,000 where should it be?” I didn’t hesitate to respond – Outer Western Sydney.

The suggestion of investing in Outer Western Sydney is surprising to many clients, particularly those who have lived in the Eastern Suburbs for long periods and don’t travel or visit the outer western suburbs, with the exception of a drive by en route to the Blue Mountains or Canberra.

When considering purchasing an investment property, it’s important to keep a broad perspective, and consider the following.

Outlook

When buying an investment property, it doesn’t need to meet the same criteria as your family home. An investment property is just that – an investment. This purchase requires a different lens. Where is the population growing? Where is there significant commercial and infrastructure development? Does the area have consistent rental demand?

Returns

There are still some Sydney suburbs that exceed the average rental returns, and looking at trends from recent years, the majority of them are in Western Sydney. Many old housing estates are undergoing re-development and making way for new houses and duplexes. This provides an opportunity to buy new property and receive a higher average return, rather than buying something really rundown and barely liveable in the Eastern Suburbs.

Affordability

We often find clients with a specific budget tend to struggle to find suitable investment properties in their preferred locations. These locations are usually suburbs that they already live in or aspire to live in, and as a result can be inaccessible or unsuitable for investment purposes. Western Sydney provides a huge spectrum of options for a range of budgets.

Changing Landscape

It’s clear there’s a huge amount of change happening in Outer Western Sydney. This is obvious from the level of investment by large hardware and furniture stores in the area. Similarly, large amounts of new land are being released around Penrith, and huge factories and warehouses are going up in Eastern Creek, Smithfield and Wetherill Park. It’s all happening fast, and it’s all happening in Western Sydney.

Land Use

Councils tend to be a little more developer friendly in Western Sydney. If you want to sub-divide or develop as your retirement plan, you need to choose wisely. Western Sydney provides larger land sizes compared to options for a similar price range in suburbs closer to the city. It’s also much more feasible to apply for the development of a granny flat or second story addition in Western Sydney.

Five simple tips to move forward with your investment property purchase

  1. Keep a broad perspective – you’re looking at suburbs of choice for an investment, not your family home
  2. Do your homework and research where the strongest population increases are, and hence residential and commercial growth trends
  3. Remember that location is key, and some areas are likely to provide higher returns than others
  4. Consider what you want to do (retirement plan, renovation, development) and that will drive your choice around land size and location
  5. Seek reliable advice, particularly if you’re unfamiliar with the area on which you’ve decided to invest in

If you are looking to enter the market or use a buyers agent please call Brooke Flint 0425 221 226.