There’s more than one investing in property in Sydney is an absolute no-brainer. Sure, real estate prices have gone up, but with interest rates remaining historically low and rental income set for growth, the time to strike is now…
According to Australian Broker, suburbs in Sydney can vary massively: in the Eastern Suburbs, the median price is far higher, but so are the vacancy rates, a legacy of the COVID-induced lack of international students. The work-from-home trend and the need for more space has created the potential for rental yield to rise as more and more people move out.
With that in mind, they surveyed the property market in search of some of the best Sydney suburbs to sink your cash into in 2021, and four that came out on top, we can help you with…
Any list of the best suburbs to invest in Sydney is always going to include Coogee, and with good reason. Simply put, the power of the Pom is strong: there is always a supply of new migrants from the UK and Ireland who are willing to pay to live near the beach in the Eastern Suburbs, making the area from Bondi down to Coogee absolutely ideal.
It is an expensive place to get onto the Sydney property market for sure, but once you are there, you need not worry about rental yield. For many, property in Coogee is one that might require negative gearing and tax-deductible growth, because getting onto the scene will likely leave you out of pocket. Don’t worry though, because over the long term, this is as safe as it gets.
Kingsford is the Eastern Suburbs without being the Eastern Suburbs: boxed in by parkland on the West and much more expensive property market on the east, it can offer a point of difference from its neighbours.
The best suburbs to invest in Sydney are the ones that nobody else is looking at, the ones that make sure that you are ahead of the property curve: with much better-known options nearby, Kingsford can be a point of difference, albeit one that will still require an amount of negative gearing to get you onto the market in the first place.
Kensington might be the perfect suburb to own an investment property in Sydney. It’s close to the beach, with easy access to Bondi and Coogee, but also a short Uber from the Inner West cultural attractions and the major capital city amenities of the CBD.
The far south of Sydney is long popular for the same reasons as the Northern Beaches: close to the water, but far enough away from the CBD to still have space. The median price is lower than the Eastern Suburbs and home loans, at least at current interest rates, are not out of control.
Once you have the place in your pocket, you’ll never lack for renters and the chances of equity growth over time are very strong. The Sydney housing market has few sure bets, but Cronulla might be one of them.
Real estate is expensive, above the median house price for Sydney in general, but with that comes a potential rental yield that is only going in one direction: once international students return and vacancy rates start to go down, you’ll be ideally positioned to take advantage.
This is a case of getting the home loan while interest rates are where they are at the moment, then sitting on the property for a couple of years and allowing the Sydney rental market to do the rest of the work for you.
If you’re looking to buy or sell, please don’t hesitate to contact us.