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A Guide to Property Investment in Sydney

With so many iconic and distinctive landmarks—not to mention it being consistently ranked in the list of most liveable cities in the world—it’s little wonder why Sydney has been quite a sought-after city in Australia when it comes to property investment. With such high demand, however, buying property in Sydney can prove to be quite a challenge—but not impossible. Let’s take a closer look at how property investment in Sydney can work for you.

1. Decide on Your Investment Strategy

While there are many ways to acquire property in Sydney and achieve the highest returns through property investment, it is essential to know what you are getting yourself into. The first thing to consider is whether or not you want to invest in commercial or residential properties.

Commercial properties will appeal to investors who want to start or expand their business. These properties are generally more expensive to invest in, but they also offer a lot more room for growth. Residential properties, on the other hand, are long-term investments, perfect for owner-occupiers who want to settle down in Sydney. These properties are also considered a way to diversify your portfolio, as you can locate them in a lot of areas in Sydney that are deemed to be stable.

2. Set Your Budget

Once you’ve decided on the type of property to invest in, the next step is to set your budget. Set a limit for the total amount you are willing to spend. Make sure you count the related costs, such as stamp duty, government fees, etc. When it comes to budgeting, remember that it’s always better to start small and go bigger as you get more experienced in investing.

3. Do Your Research

Get to know the particular area you want to invest in. Research the neighbourhood. Ask yourself the following questions: What is the median rental yield in the area? How big is the population in the area? What are the schools and hospitals nearby? What is the current market value of properties in the area?

You also need to determine if the area you want to invest in has undergone any recent changes that may affect the overall value of the property and the area at large. After all, you don’t want to invest in a property that won’t profit you in the long run.

4. Choose Your Property Carefully

Once you’ve decided on a neighbourhood and a property, it is important that you know the ins and outs of the area. Check out your potential investment property. Find out how many people are currently renting out in the area. Research the average rent per square foot in the area.

There are lots of factors to consider when it comes to investing in real estate. While some investors may find the process too overwhelming to handle, others may find it pretty easy to get into. With the right amount of planning and research, you can definitely make property investment in Sydney a success.

5. Consider Your Exit Strategy

Once you’ve decided on your investment property, the next step is to make sure you know your exit plan. By that, we mean you need to know how to make a profit from your property. Unless you’re planning to live in the property yourself, you will be looking to sell it. With this in mind, research top real estate agencies to help you sell the property and get the best price.

6. Always Be Prepared for the Unexpected

Once you’ve acquired your investment property, treat it well. Take care of the place and make sure that it’s in the best possible condition at all times. Keep in mind that you will also be judged by how you take care of your investment property, so be prepared to be inspected by prospective tenants by prior arrangement.

Conclusion

The property market in Sydney is obviously very competitive and requires planning, research, and careful consideration before you invest in a property. But with the right amount of hard work and research, you can definitely make property investment in Sydney a success.

Before you can invest in a property you like in Sydney, you’re going to need the help of a mortgage broker with a good track record. Luckily, Shore Financial is here to assist you with financing, making the property buying process effortless. As Australia’s number one mortgage broker, we know the Sydney property market inside out, so you’re guaranteed to get the most out of your investment. Get in touch with our team today!






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