A Guide to Property Investment in Sydney
Once you know why you’re interested in buying investment property in Sydney, it’s time to figure out where exactly to start. In this quick guide to property investment, we’ll go through what’s involved, how to do research and ways our buyer’s agents at Wealth 360° can help.
Feel free to contact our team to schedule a consultation.
I. Understand What’s Involved
Before you start actively investing in property, it’s important to understand what’s involved in the process. Of course, you won’t be able to foresee every potential scenario, but you can get an idea of what to expect in terms of the time, money and effort involved.
When it comes to how long it might take to find and secure an investment property in Sydney, realise that the process could take months or even years. There are a lot of moving parts when it comes to investing like council regulations, legal obligations, supply chains and more.
So, when it comes to time management, it’s usually best to overestimate how long the process will take from start to finish.
In terms of money, you’ll also want to overestimate your budget. While you can work with expert buyer’s agents to help you avoid hidden fees and bad investments, there’s usually something that comes up financially that buyers don’t expect.
Especially in an expensive city like Sydney, the financial side of investing in property is definitely something you’ll want to take seriously.
Whether it’s a burst pipe or you get outbid in an auction, there are many ways your money might not go as far as you think. So, as with any big purchase, it’s generally a good idea to overestimate your budget.
Another aspect of property investment that’s often overlooked by buyers is the amount of effort involved.
It takes effort to understand the property market, get your financials in order, search for a property that meets your requirements, participate in negotiations and stay patient throughout the process.
Of course, when you hire a buyer’s agent there’s a lot less effort you’ll have to go through, but it can still be quite taxing emotionally no matter what.
But, especially if you’re opting for a DIY approach to buying investment property Sydney-wide, definitely don’t underestimate how much effort is involved.
II. Do Your Research
Next, once you understand a bit more about what you’re getting into when you invest in Sydney property, you’ll want to start doing your research as you get serious about your investment journey.
While there’s lots of research you can do, including market research and studying property trends, it’s usually best to leave the more nuanced aspects to experts. But, in the meantime, it’s still a good idea to do some of your own research on suburbs, prices and buyer’s agents.
Research the suburbs in Sydney that you may be interested in investing in. The best suburbs for an investment property in Sydney are those with a solid council in charge and where you’ll be able to charge relatively high rent prices.
In other words, you’ll want to be able to charge enough rent to make your investment lucrative while still getting a good deal on the property as a whole. Plus, you’ll also be looking for up and coming areas with a robust council.
We’ll talk more about some of the best suburbs for an investment property in Sydney below.
Next, you’ll want to get a feel for the average housing prices in each suburb that you research. After a few months of looking, you’ll start to notice some patterns.
Are the property prices going up? Or do they seem to be going down? Which properties are on the market for ages? Which go to auction? Which ones seem to sell within days?
Understanding the pricing of certain properties in certain suburbs can help you get an idea of how much you should have in your budget and what’s reasonable to spend on a property in that area.
However, in many cases, working with a buyer’s agent to really understand what’s a good deal and what’s not is often essential.
For expert advice and a wealth of knowledge about investment property Sydney-wide, a quality buyer’s agent can help to fortify your portfolio and take the guesswork out of investing.
But, not all buyer’s agents are created equal. You’ll want to do your research into potential buyer’s agents based on their past contracts and experience levels. Then, you’ll want to book a consultation and make sure it’s a good fit personality-wise.
After all, with many big decisions to come, you’ll want to make sure you and your buyer’s agent share the same values and are on the same page. So, be sure to do a fair bit of research on buyer’s agents instead of choosing the first one you come across.