With the number of properties on the market, each with different areas you can invest, it can be difficult to determine what makes a good property investment in Sydney. Fortunately, there are several things you can do to ensure that the investment you are buying is a good one. After all, no one wants an investment that doesn’t change or go up in value, or worse, causes you to lose money. So how do you choose the best residential and commercial investment? Jufran Investments recommends considering the following factors:
Try to find out the current property cycle for the area. This factor is critical if you are looking to increase your capital-growth in the short or medium term. Is the market in its recovery phase or is it going through a boom and is currently at its peak? While you will be able to see a lift in prices in the long run, are you willing to wait for 7-10 years for something you can get within 2?
Previous and Projected Growth
Similar to our previous point, it’s important that you understand the movement of the market in the area over the past years. This is to ensure that you won’t invest in a dead end location that has already exhausted its potential in the current cycle. How much have the prices shifted in the area? The property you are looking at now can cost about 5 times more within 12-18 months, so be sure to factor in the timing in your decision making.
Population and Demographics
Take the time to familiarise yourself with the demographics and population of a potential residential investment, as the increase or decrease of a certain location’s population will have an effect on the property demand in the area. For instance, if the area has high net worth, it’s highly likely that its population will be predominantly young familiar or single professionals.
A commercial investment that’s close to shop, public transportation, and schools is an excellent choice. Its proximity to locations like this ensures that you will always experience great foot traffic. If a successful conglomerate has decided to set up shop within the area, then you can expect the population to increase dramatically. Large corporations often do intensive research before moving into a certain location, and if they have started construction in a particular area it’s because that location has promising economic growth.
Make the most of your property investment in Sydney by using the points discussed here to guide your decision-making process. For a more thorough discussion, you can get in touch with our team at Jufran Investments. Contact us today to schedule an appointment.