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Securing that Perfect Investment property in Sydney
Informed advice – undeniable results.
Deciding to buy an investment property in Sydney has paid off well for many investors, both in relation to income and capital growth. With substantial knowledge obtained from experts in the field, the better your venture will pay off. DPN are an Australian property investing company, helping clients make smart decisions with property investment ventures.
The Benefits of investing in property
For those who wish to entrust their finances in bricks and mortar rather than volatile stocks and shares, investment properties can help you make the leap. At DPN we guide you through the intricate process which can often be wrought with confusion and complications. With over 80 years of collective experience across investing, financial planning, broking, real estate, insurance and accounting we offer clients sector-specific expertise. When you partner with DPN, we help you research the market, enabling you to understand the risks, as well as the benefits. We assist you in the selection of a promising area, one which will appeal to potential tenants and make your Sydney property investment worthwhile. With access to over 30 lenders we can also offer financial guidance to find a product that suits your needs. With ownership of all the necessary licensing and professional accreditations DPN are more than qualified to help you realise your ambitions for dual income and other investment properties in Sydney, Perth, Melbourne and Brisbane.
We are dedicated to assisting our customers in becoming financially independent. Sydney property investment clients rely on DPN to help them build their portfolio and move from curious first time investor, to multi-property owning business and commercial investors. Our team of experts in investment properties will show you how you can achieve great returns, save tax and build wealth. With local expertise and national coverage we help you plan your portfolio for the future.
The Sydney Property Market
There’s no doubt about it: Sydney is the lifeblood of the Australian property market. Melbourne is certainly experiencing its own boom times and is forecast to eventually outpace Sydney. However, Sydney remains the number one property investment destination in the country – though its southern neighbour is close on its heels.
There are many reasons for this: the lifestyle, the climate and its de facto status as the sundrenched capital of Australia. It’s where most of the business and finance HQs are located and has the highest number of professionals in the country.
Yet one factor that often gets overlooked is the sheer size of Sydney. It’s geographically one of the largest cities in the world and sprawls from the eastern suburbs to the foot of the Blue Mountains and then there are vast distances between the northern beaches and, say, Jannali to the far south.
Sydney is truly huge. This means that it is capable of absorbing all the violent property frenzies that occur. It can sustain rapid development and cope with the peaks and troughs of the global market. There are still large parts of Sydney that remain undeveloped and many suburbs that haven’t yet hit their potential.
So when you couple this with the fact that the desire and hunger for living in Sydney still hasn’t abated, then this makes for a potent mix. Sydney will always be a popular place for investors and first home buyers.
Here’s some of the key areas to consider:
The North West: Family and investor driven growth
The north west of Sydney is one of the largest growing areas of the city. It encompasses the Hills district, the Northern beaches, parts of the upper north shore and stretches all the way up to Berowra Waters. What all these areas share in common is that they’re family friendly, with houses on large blocks, tree lined streets and parks. They’re very suburban, quiet and, it’s very easy, when you drive through areas like Belrose, Terry Hills or Cherrybrook to feel that you’re a long way out of Sydney. It’s not at all uncommon to see horse floats and motorboats sitting in driveways. The North West is very close to national parks and beaches. For young families it offers a really classic slice of Australian life.
The north-west was a big part of the Sydney property boom that began a few years ago. It didn’t just boom - its prices skyrocketed. For instance, in the last 12 months suburbs such as Cherrybrook, Pennant Hills and Dural have all seen house sales jump up by over 30% growth. Even in a city that’s been white hot for the last five years, this still stands out as a staggering result.
Part of the reason is the improved transport to the area. For a long time living in the north-west was pretty much akin to being in Newcastle, so long did it take to get to the CBD. However the State Government’s planned North West Rail link, due in 2019, will drastically speed up transport. Other key infrastructure: such as a new hospital in Frenchs Forest; upgraded shopping centres and improved bus services have also made the area more desirable.
The attraction of the north-west is also to do with families being priced out of areas like the North Shore or the inner west. For these families the lure of a decent property in a nice suburb is very attractive. For investors the north west remains an excellent buy. It’s got a growing population with stable long term renters wanting to move into the area.
Western Sydney: the land of opportunity
West Sydney remains an area of great possibility. It’s one of the few regions left in Sydney that still is releasing parcels of land for development. There was a time, in fact only a few years ago, when land developers were actively coaxing people to purchase land in the west. Something that seems absurd these days.
Western Sydney covers such powerhouse centers as Penrith, Parramatta, Lidcombe, Blacktown and Fairfield. Long neglected by investors it’s really jumped into its own from the mid 2000s onwards. The region itself is one of the fastest growing areas in Sydney in terms of population. It’s a truly multicultural hub with nearly every nationality represented. It’s also where many migrants and refugees from Africa and Asia and Middle East are settled. It’s an exciting, lively area with diverse cultures, festivals and shops. The “bogan, westie” label it was known by back in the 70s and 80s no longer applies. It’s a vastly different region altogether. It has a population of over 2 million and is growing faster than the national average rate.
It’s become very attractive after much upgrading of infrastructure and with the city centres becoming more cosmopolitan and buzzing. It also has one of the youngest populations in Australia and is very attractive to young families.
The west, because of its booming population, has a great deal of political influence. Successive governments have accordingly pumped millions of dollars into improving schools, the arts, hospitals, jobs and transport and roads. Some of the biggest changes include the urban renewal plans for Parramatta; the planned M12 motorway and construction of the Werrington Arterial Road. However, the biggest change of them all is the plan to create an airport at Badgerys Creek. This will increase commerce and retail and population.
For the investor the west remains one of the most affordable buys in all of Sydney. You are spoiled for choice as blocks of land continue to be released, new apartment construction continues at a fast pace and new houses and subdivisions continue to be created. Because the west is so vast and sprawling it’s worth remembering that some parts are much better buys than others. The Penrith and Fairfield and Lidcombe areas, for example, are steady growers and will likely to continue unabated. Other areas like Merrylands and Guidlford have not proved as resilient to market corrections. Some parts of the west have also had an oversupply of apartments. This has led to drops in market prices and rental yields. Finally the West can be the most vulnerable to mortgage hikes as typically most of its property owners are operating on a very tight margin.
So the West, on the surface, seems like an excellent investment choice. And it mostly is, due to its booming population and affordability and improved infrastructure. But it needs careful research to buy the optimum product and it’s definitely worth speaking to a professional first.
The South West: Affordable and solid long term growth
The southwest is comprised of the big regional centers of Canterbury, Campbelltown, Lakemba and Bankstown and Liverpool. It’s another vast and sprawling geographic area but it also has highly disparate regions. For instance, the Macarthur region, named after famous sheep baron, John Macarthur, is almost pastoral. It has more in common with the green, rolling hills of the Southern Highlands than Punchbowl. Areas like Lakemba and Campsie are, by contrast, very urban and with a substantial migrant population.
Like the western suburbs the south west districts are highly valued for their undeveloped blocks of land and how affordable housing is. It’s generally a solid growth area.
For example, the median house price for Campbelltown in June 2015 was $440 000, a jump of around 20% from the previous year. This indicates the enthusiasm from both investors and first time buyers yet also highlights how comparatively cheap the area is when placed in the greater context of the Sydney market.
What also makes the south west so desirable to investors are the plans for significant infrastructure upgrades.
There are two major infrastructure initiatives to watch for: Badgerys Creek airport and the south west rail corridor.
The Badgerys Creek airport will mean a flow on of population and commerce affecting areas such as Campbelltown and Liverpool. This in turn will add thousands of jobs, drive growth and make it a property hot spot.
The south west rail corridor will link up the southern districts with the CBD and also give it access to the northern and outer suburbs.
Both these projects will make the south west more accessible and sought after.
Both apartment and house growth is very solid in this area. It’s a sound investment for medium to long term growth. But as an investor bear in mind that the south west has more extreme variety in it’s demographic, household incomes and geographic make up than anywhere else. As mentioned the population of Campsie are very different to those living in Camden. Property types that work in one area won’t necessarily work in another. So that’s why careful, thorough research is mandatory before investing here.
Ultimately, before heading off on your property investment journey for any part of Sydney you should talk to a professional. DPN can help you with suburban property profiles, immersive, detailed research and give you personalised tailored information that will suit your needs as an investor.