Sydney Property Investment Guide for 2022
November 11, 2021
Whether it’s your first time buying investment property in Sydney or you have some experience under your belt, it’s never a simple process. But, by clarifying your goals, doing your research and working with a buyer’s agent, you can set yourself up for success in the property market.
Check out this quick Sydney Property Investment Guide for 2022 to help you get started today!
1. Understand Why You Want to Invest
First thing’s first, it’s so important that you have a strong reason for buying an investment property in Sydney. The process of investing in property is quite stressful. So, you’ll want to have a strong “why” to help you get through it all.
Most people invest in property to build wealth. Property is one of the best investments you can make. People will always need a place to live and, in general, properties not only retain but increase in value over time.
So, to build wealth for your family and generations to come, buying an investment property in Sydney is an incredible way to build a solid portfolio of wealth.
Improve Your Community
Another reason many people invest in property is to improve the communities in which they invest. When you purchase an investment property in Sydney, you give future tenants a beautiful home to live in while you simultaneously increase the value of the whole block.
For example, if you build a new home on an empty plot, that land is worth more with a new home on top. Or, if you renovate a run-down home, you also increase its value and therefore increase the value of the homes around it.
Decide on What You Need
The final step in finding your “why” is deciding on what exactly you need in an investment property in Sydney. You might ask yourself questions like:
- Are you looking to increase your net worth?
- Do you want to balance cash flow or optimise tax?
- Should you flip and sell a property for a quick profit?
- Do you want to buy a property and hold onto it to rent to tenants?
Once you decide on what you need, you can move on to the research phase.
2. Do Your Research
Before you even start looking at actual properties to invest in, you’ll want to do some broader research. For starters, you’ll definitely want to look into different suburbs as well as the housing market and rental market as a whole.
Doing this kind of research will help you narrow down your search to find an investment property in Sydney that’s actually realistic for you.
When you do your research on Sydney suburbs, you’ll want to keep an eye out for:
- What kind of dwellings are most common in the area?
- How well does the council manage the public services?
- What kind of people live in the area? Families? Singles? Couples without kids?
- What are the future infrastructure plans?
- What other demographics might make for an exciting investment opportunity?
From there, you’ll also want to take into account the housing market. The housing market is always changing and there are times when it’s good to buy an investment property in Sydney and other times that are better.
Start to notice whether prices are going up or down and get a feel for the housing market before you start actively looking for specific properties.
In addition to the housing market, you’ll also want to check out the rental market. Especially if you’re planning to buy investment property in Sydney to rent out to tenants, it’s a good idea to know how much you’ll be able to charge for rent and whether it makes sense as a strategy.
So, again, see whether rental prices seem to be going up or down and what renovations might be necessary to charge higher rents.
3. Set a Budget
Another extremely important factor in planning to buy investment property in Sydney is to set a realistic budget.
While budgets vary from person to person depending on your income and investment goals, you’ll definitely want to make sure you account for buyer’s agent fees, renovations, council fees, lost time and anything else that might come up.
In general, it’s best to overestimate your budget when it comes to property investment.
Choose a Buyer’s Agent to Help You
Finally, the last step in planning to invest in property is to find a buyer’s agent to help you through the process.
Buyer’s agents will advocate on your behalf and can help you in a variety of ways including finding hidden off-market gems, aiding in negotiations and offering peace of mind, knowing that you have a property expert on your side.
Ready to find an amazing investment property in Sydney? Contact Wealth 360° to book a free consultation with our experienced Sydney buyer’s agents to discuss your options.