4 Attractive Features of Sydney Residential Investment Properties
If you want to purchase an investment property in Sydney, or anywhere in Australia for that matter, it is necessary to be strategic and well-informed so that you choose an investment property that matches your financial situation, needs and aspirations. When buying investment property, you should consider its location, the type of property, features that will attract tenants and also the history of the property.
1: A great location
Astute property investors realise that the selection of a property in a sought after location can help to guarantee capital growth. Most often, properties that are located close to the CBD enjoy good capital growth and high rental demand and such a location is eagerly sought after by purchasers of quality portfolios. Investment property Sydney has available in such locations are often few in number but high in demand and this can cause prices to escalate.
However, there are many suburbs that characteristically offer good rental return. Because of the good rental return, these generate good cash flow and as a result of property prices being cheaper in these areas than in the inner city, a better rental yield is often enjoyed.
Generally speaking, it is recommended that property investors:
- Try to avoid properties located on main roads and directly under flight paths.
- Consider waterside suburbs that have great appeal to both tenants and future purchasers. Properties in waterside areas are also acknowledged to hold their value.
- Do not feel that it is essential to buy in a location close to where they reside.
Be sure to research the state of the property market in the areas in which you are interested and monitor rental occupancy rates, rental prices and sales figures. You should also consider the level of interest in the area, current population rates and projected population trends.
2: Choose the right type of property
While residential property investment is the most common and popular option, it is not the only option available. Commercial and holiday rental properties are other alternatives.
If you opt to purchase a residential property, the next choice is to decide on a unit or house. The choice that is made will depend on your financial situation, opportunities for capital growth and rental potential.
3: Features that appeal to tenants
Having a good idea of the type of people that will be most attracted to a property is important, as the features that will appeal to a family will be quite different to those that appeal to a professional couple.
Tenants will be interested in a property’s vicinity to services and amenities, including: shopping centres, schools and transport.
Generally speaking, balconies, parking space and internal laundries are consistently attractive to tenants.
Speaking to rental agents in the area can provide you with useful information about the types of properties that are in demand and the specific features that are sought by tenants.
A little intelligence about a property’s history can be most enlightening and useful. If the property was previously rented, find out the rental price that was paid by tenants, any periods of time in which the property was without tenants and the reasons for any vacancies.
Residential property investment can be a way to secure your financial situation and financial future, so long as you make purchasing decisions based on the best information available and understand the need for research into the features that are most attractive to tenants.