Would astute property investors still consider Sydney (lower end)

[Cherry Pro]

Hi All

Was just going through the attached from John Edward's Residex report and am wondering given that both the Sydney house (7.9%) and unit (6.84%)market have had the lowest p.a. growth, does investing in the lower end of Sydney still merit consideration ?

All other capital cities (even regional areas) show a greater return as compared to Sydney.

I know our IP in Sydney has shown negative growth over the last 5 years and would be happy to hear from other investors who've enjoyed greater success in the Sydney market.

Thanks.

 

[skater]

Was just going through the attached from John Edward's Residex report and am wondering given that both the Sydney house (7.9%) and unit (6.84%)market have had the lowest p.a. growth, does investing in the lower end of Sydney still merit consideration ?

Of course! There are many different reasons why someone would want to buy into the Sydney market. The most compelling to me is that it has been in a slump for some time, which means that ultimately there is growth to come, unlike some of the other States that are growing presently. I know that if I buy in Sydney I am going to get 100% of the CG, whereas if I buy in, say, Brisbane, I could miss out on growth by buying late into the market. Also, not having a Crystal Ball, there is a possibility of buying into an overheated market & paying too much. ATM it is a buyers market in Sydney as there are fewer purchasers.

 

[ianvestor]

I'm keen on buying in Sydney, however I'm not in a huge rush... I'll probably start looking toward the end of this year.

And, like my strategy in general, I will be buying as much and as often as I can afford to.

Edit: Sorry I re-read your post and I take it all back; I don't like investing in the 'lower-end' in any city. I'd stick to good suburbs within a 10km radius of the CBD, regardless of the property type or size.

 

[Ajax]

Recent article in Fin Review had estimated growth in house prices in Sydney in 2008 of 12% and unit prices of 13%. The source of the figures was Investor Edge (whoever they are) with the comment that Sydney house and unit prices were "fairly cheap on an historical basis".