Being a Sydney based business; the vast majority of our investors live in Sydney too, and I am yet to meet an investor who doesn’t want to purchase in their backyard.
When I ask my Sydney clients where they would like to invest, the vast majority will mention the Inner West or equally desirable areas like Bondi, Kirribilli, Elizabeth Bay, Crows Nest, etc, . In asking “why”, one is invariably met with “because it is full of high earners…it’s close to the City, lots of jobs….there are good transport options, … there aren’t too many ugly high rises… there is soul with places to shop, cool cafes and restaurants… it’s close to the Uni or the hospital ” and on it goes.
The problem applying those fundamentals to Sydney or Melbourne, particularly when including the current yields, is the cost! Sadly those cost restrictions often send an investor many, many kms from where they know would be a better investment or have them not invest at all.
So what happens when you take all those sensible investment fundamentals, and criteria mentioned above, but somewhere affordable where the serviceability can be achieved, as can the capital growth… only it’s not in Sydney/Melbourne? Suddenly the penny drops - same same, but more affordable!
A smart investment is about using data to identify those areas that hold the same emotional appeal to your own Sydney backyard, the same data and fundamentals that made Sydney suburbs so desirable, and drove record breaking growth for the last 10 years...and investing in that area before the market falls in love with it.
Sadly too many investors get it wrong; in fact, over 70% of property investors only get to purchase one! So if you would like to speak with an Investment Property Specialist who does this day in and day out, please give us a call and we can arrange a cost free meeting at a time and place convenient for you to start the conversation.
Warren Jacobs (B.Ed.) - Senior Investment Consultant