As one of Australia’s largest cities, Sydney is an attractive investment prospect for residential property investors looking to diversify and boost their portfolios. However, with economists warning that house prices could fall by up to 25% in Sydney in 2019, it’s vital that investors choose their target properties wisely.
Property investment is big business in Australia. It accounts for 60% of the banking system’s assets, and over half of Australians’ wealth is held in residential concerns. That works out as $6.6 trillion over 9.6 million homes, or a respectable three times the total value of superannuation funds.
Buying your first investment property may seem daunting—it’s a major financial commitment after all. However, if done right, it can be the start of a property investment journey towards a more financially secure future.
Investment properties can be a great way to qualify for major tax breaks. But there’s a caveat to this: timing is everything.
Australia’s retirement system is known to be among the best in the world. With the government’s age pension and mandatory “Superannuation Guarantee” programs from employers, it has far exceeded other industrial nations like the United States when it comes to high individual savings rate.
Many clients come to see us with the idea that they can make money from property, but they don’t really understand how. If you know the formula, and you get it right, then it’s relatively easy to make money through property investment and often it doesn’t cost very much to do so.
How is that possible? How can you grow your wealth with little initial outlay?
But I know Sydney…
This is one of the statements we hear most often at Calla Property when we first talk to clients about property investment.
Clients often feel that they know the city and even suburb they live in or have invested in in the past. Usually this is because they’ve done quite well, either through good timing or holding the property for long enough. Often this is reason enough for the client to want to invest in the same area again.
There were reports last night that the Sydney property market is starting to slow down as we finish another weekend that resulted in lower clearance rates with the average of around 70% instead of 80%. There were also reports from auctioneers and real estate professionals that bidders seemed less bullish.
This is one of the most common questions I am asked. And yes, they certainly are. One bedroom apartments are gaining in popularity, largely due to the increase in Gen Y numbers renting, the question is what constitutes the right one-bedroom apartment as an investment property?
There are a number of essential factors that make an apartment appealing to Gen Ys and it is this formula that we concentrate on perfecting at Calla Property.
Are you thinking about becoming a property investor? It’s incredibly important to approach buying an investment property in a different way than buying a home. Here are 3 important considerations for anyone looking to invest in property.