The highs and lows of Sydney city investments
I have seen many investors enjoy huge financial gains in this market, but have also sadly witnessed those who have suffered major losses.
Blogger: Carlie Ziri, Lifestyle Property Agency
It is an erratic market and the key to success is having an innate understanding about what you are buying, and a realistic view of the returns and capital growth you can expect to see in the short, medium and long term.
The Sydney 2000 postcode is unlike any other property market in the country. It is predominantly an investor market with almost two-thirds (63 per cent) of its 14,000 apartments currently leased to tenants.
Within the Sydney CBD, there are three distinct markets with different characteristics that investors need to be aware of:
City North – covers Margaret Street through to Walsh Bay
Mid City – starts from Hunter Street through to Bathurst Street
City South – runs south of Bathurst Street through to China Town
Property prices vary between these precincts, with the City South home to more affordable residences, while the northern tip of the city offers some of the most expensive real estate in
Australia, with apartments achieving over $65,000 per square metre for a small piece of Sydney’s inner city lifestyle.
One thing that is common among all of these precincts is volatility, and the return on your investment can vary dramatically depending on where the property is located and what attributes it has.
For example, in the space of one week I recently negotiated a deal where one client made over $300,000 on an apartment she owned for just 12 months, while another client made a $25,000 loss on an apartment he owned for over 15 years.
These apartments were located within three blocks of each other; however the latter apartment had no view, balcony or parking, while the former offered all three of these imperative attributes.
The Sydney CBD offers buyers a secure investment in the medium to long-term, and with the right choice, rental returns are higher than other Sydney suburbs. However, it is imperative that the property ticks certain boxes.
There are five key things I strongly recommend you look for to ensure your inner city purchase is a successful venture:
1) Building: Purchase in a well-managed and desirable development
2) Views: Harbour or iconic views attain the highest capital growth. If your budget is limited, ensure you at least have a great city outlook
3) Parking: Although not essential, it has a big impact on your property’s re-sale value
4) Outgoings: Ensure outgoings are reasonable and have long-term sustainability
5) Location: Buy in a development that is well placed to offer residents a fabulous inner city lifestyle with key desirables in arms reach i.e. transport, shopping, restaurants, entertainment, parks etc
About Carlie Ziri
Carlie started her property career in the inner city market in 1994, which has given her almost 20 years’ of experience in this unique property market.
Carlie has been able to conquer her market in both leasing and sales, which has resulted in her selling over $400 Million worth of properties and achieving rentals of up to $5000pw for her clients.
With her extensive experience, impassioned drive and dedication, along with her wealth of long-standing contacts, Lifestyle is set to swiftly become one of Sydney leading property agencies.
Lifestyle’s specialised team of property experts is one of the most experienced in selling and managing lifestyle properties.
Boasting over 50 years combined experience in inner Sydney property management, the Lifestyle team has previously sold over $1 billion worth of city dwellings ranging from $400,000 to $10 million, and managed leased properties valued up to $5,000 per week.